Annual Report and Financial Statements 2017

working towards a cleaner energy future We all have a say in what our energy future will look like and we have a responsibility to act Annual Report 2017 Our Impact 01

Our Impact

Chairperson’s Statement 02 Chief Executive’s Review 04 Significant Achievements for 2017 06 New Roles and Responsibilities SEAI in 2017 09 SEAI Making a Difference for all Energy Users 12 Snapshot of 2017 24

Governance

Corporate Governance 28 Energy Efficiency Report 31

Finance

Governance Statement and Board Members’ Report 34 Report of the Comptroller and Auditor General 42 Statement on Internal Controls 45 Statement of Income and Expenditure and Retained Revenue Reserves 47 Statement of Comprehensive Income 48

Statement of Financial Position 49 Statement of Cash Flows 50 Notes to the Financial Statements 51 SEAI 02 Sustainable Energy Authority of Ireland

Chairperson’s Statement

A year after the decision by the United States to withdraw from the commitments set out in the Paris Agreement, there are still grounds for hope. The majority of world leaders continue their commitment to the achievement of global climate change objectives. Many nations, and indeed global corporations, have put strategic plans and actions in place to continue progress on this vital world issue. Nonetheless, converting those hopes into grounded, practical solutions to reduce carbon emissions remains a world-wide challenge.

On the domestic front, we are still playing catch-up on meeting effective and equitable decarbonised energy future. Through our our international obligations on climate change. However, a activities, we aim to empower energy consumers to play a more number of initiatives introduced by Government and the Minister active role in our low carbon transition. The interaction between for Communications, Climate Action and Environment, firmly infrastructure, technology and society will become ever more support Ireland's commitment to the Paris accord. important as we enter the next phase of decarbonisation. In this regard, SEAI will continue to provide cutting-edge, evidence The Government White Paper on Energy Policy in Ireland based analysis and will support Government through our “Ireland’s Transition to a Low Carbon Energy Future” continues to modelling, statistical analysis and behavioral economics underpin the policy development process and endeavours to work streams. put the citizen as well as consumer at the heart of our national ambitions. The Government’s National Development Plan (NDP) – Project Ireland 2040 is a significant step funding available for climate The National Mitigation Plan (NMP), published in 2017, is a further action, including the direction of almost €22 billion to addressing step to setting Ireland on a pathway to achieve the level of the transition to a low-carbon and climate-resilient society. The decarbonisation required. The whole-of-Government approach capital investment priorities contained in the NDP will be an and the measures set out, provide the basis for transitioning integral part of Ireland’s delivery of the climate–action objectives. Ireland to a low carbon, climate resilient and environmentally They are truly ambitious including measures such as upgrading sustainable economy by 2050. 45,000 homes per annum from 2021, the roll out of the Support Scheme for Renewable Heat, the transition to low emissions SEAI will play a key role in delivering on the ambitious targets set transport including electric buses for the urban bus fleet and a out in the White Paper and the NMP. In July 2017, SEAI launched target of just under half of our vehicle fleet to be fully electric. its own Statement of Strategy for the period 2017-2021. This SEAI endorses the compilation of a detailed and coherent strategy has been framed in the context of the overall vision for roadmap to set out the actions to achieve the overall objectives Ireland’s energy to be sustainable, secure affordable and clean. set out in the NDP and looks forward to playing an important Our strategy acknowledges that all parts of society, including part in its delivery. business and Government, must be involved in the sustainable energy transition. It is also predicated on the guiding principle SEAI has experienced significant growth in budgets and that sustainable energy is about improving people’s lives, resources in 2017 reflecting the strategic relevance of the bringing comfort and convenience, addressing environmental Authority in delivering on the national objectives. With the challenges, as well as creating and protecting jobs and support of Minister Denis Naughten and the officials within enhancing Ireland’s competitiveness. the Department of Communications Climate Action and Environment, this growth in budgets and resources is likely SEAI is a catalyst for transformational change. We deliver this as to continue with the implementation of the NDP. We will an Authority by providing evidence, analysis and interventions continue to focus the Authority to deliver value for money for which bring citizens, communities and businesses to a cost this investment; to implement expanding government policy Annual Report 2017 Our Impact 03

objectives; and to achieve the ambitious vision set out in our Statement of Strategy 2017-2021.

I would like to thank my colleagues on the Board of the Authority for their support during 2017 and extend my sincere thanks to our CEO Jim Gannon for his leadership of the organisation in a rapidly changing environment. I want to fully acknowledge the endeavours and commitment of his highly focussed executive team and all the staff in SEAI for their achievements last year. The SEAI Board will continue to concentrate its efforts on working with all of our team to build on the success of recent years, ensuring that our increased resources are used strategically and deliver value for money, as we move towards a more rapid decarbonisation of our energy system.

Finally, I want to thank the Minister and Department officials for their continued support and encouragement for the Authority as we work together towards our energy and climate change goals. We will continue to play our part as an authoritative and independent voice in support of those goals.

Julie O’Neill Chairperson Sustainable Energy Authority of Ireland

“Our strategy is predicated on the guiding principle that sustainable energy is about improving people’s lives, bringing comfort and convenience, addressing environmental challenges, as well as creating and protecting jobs and enhancing Ireland’s competitiveness” SEAI 04 Sustainable Energy Authority of Ireland

Chief Executive’s Review

Increased energy efficiency is the most cost effective way to reduce carbon emissions and increase our competitiveness; it also reduces our reliance on imported fossil fuels and the inherent economic exposure that this brings. As Ireland’s national energy authority we are working tirelessly with Government, the public, businesses and communities to achieve a cleaner energy future.

Each year, SEAI invests a significant proportion of the budget provided to us by the Department of Communications, Climate Action and Environment (DCCAE) into the Irish economy. This is achieved through a range of grant and other programmes, to deliver increased energy efficiency and to decarbonise our economy. These actions stimulate vital economic growth and employment in our economy. Last year programmes administered by SEAI invested €70 million Exchequer funds in building energy upgrades, supporting more than 2,000 jobs. An important indirect benefit of this is the significant growth of our energy communities’ network as drivers and leaders in Ireland’s energy transition. Through this network we continued to engage, inform and provide direct grant support to over 130 communities to enable them to harness the benefits of increased energy efficiency.

Along with our capital programmes, SEAI has a mandate to provide policy analysis, forecasting and modelling support to the DCCAE. As Ireland approaches 2020, and begins planning our pathway to 2030, it is essential that we continue to strengthen this role in response to changing European Policy and the climate challenges we face. This mandate is central to what we do. It draws on the unparalleled access we have to energy related data “Last year programmes and forecasting, experience of catalysing change with citizens administered by SEAI and industry and the sometimes challenging area of real-world policy implementation. In this statutory role, we continue to work invested €70 million hand in hand with DCCAE and other government departments to support their policy and decision-making processes. As we Exchequer funds in building move forward, we will continue to interact with the range of energy upgrades, supporting public, private sector and academic institutions that generate a variety of changing perspectives, models and scenarios. more than 2,000 jobs” During 2017, SEAI was central to both research and innovation Annual Report 2017 Our Impact 05

“We aim to deliver the policy and incentive platforms that will allow us to meet and exceed the EU 2030 targets which are likely to become clearer during 2018”

in the energy sector in Ireland. Internationally, we continued in incentive platforms that will allow us to meet and exceed the EU our role as national delegate to the Horizon 2020 programme, 2030 targets which are likely to become clearer during 2018. helping to identify new areas of priority for both Ireland and Europe. Alongside this, we have continued to participate in, and Finally, it is important to recognise within this report the in many cases lead, several International Energy Agency, UN and dedication and commitment of our staff and the guidance of EU fora around best practice in the transition to a cleaner energy our Board, who have experienced unprecedented change over future. Domestically, we funded 36 research and development the past two years as we have increased our activity to match projects across a range of sustainable energy sectors. We funded Ireland’s growing ambition. For this, I thank them without 15 prototype ocean energy projects, alongside the ongoing reservation, and look forward to working with them as we development of Ireland’s ocean-energy test infrastructure. deliver even greater impact over the coming years. In parallel, we have progressed our work on enterprise development with both Enterprise Ireland and the IDA.

Ireland has a unique set of renewable energy resources and opportunities that we must utilise in an appropriate and mature fashion. There was good progress on renewable energy deployment Jim Gannon in 2017, resulting in an absolute reduction in energy related CO2 Chief Executive emissions of over 2%. Despite this progress, as the economy continues to grow, it seems unlikely that business as usual will see us achieving our targets. This is supported by our detailed analysis which delivers on our national energy forecasting mandate. During 2017, SEAI continued to support the DCCAE in the design of more impactful policies and measures to catalyse greater activity across renewable electricity, heat and transportation.

Although our national performance improved in 2017 with regard to carbon intensity, we remain on track to miss our 2020 targets. SEAI will continue to be central in Ireland’s attempt to close the gap to 2020. In parallel, we aim to deliver the policy and SEAI 06 Sustainable Energy Authority of Ireland

Significant Achievements for 2017

21,100 home energy upgrades Over supported including 6,900 fully funded 360 upgrades to vulnerable energy poor homes homes of people living with Sustainable energy chronic respiratory community network membership more than conditions were doubled with 137 member upgraded in collaboration communities across every with the HSE, through county in Ireland the Warmth and Wellbeing scheme 972 new electric vehicles (EVs) grant aided, a 103,000 46% increase on 2016. Including second hand residential and New deep retrofit imports, the national EV commercial pilot scheme fleet almost doubled in Building launched with 2017 to six early projects 3,600 Energy Ratings approved vehicles published

Pilot lighting grant for SMEs €5.75 60 projects received €535,000 million support invested in 22 projects in major public sector Pilot grant for high collaborations with the Office of efficiency dairy farm equipment (in partnership Public Works and Department of with Teagasc). 48 projects Education and Skills received €190,000 support Annual Report 2017 Our Impact 07

Commencement of Ecodesign 54,000 and energy labelling market students surveillance activities. engaged through retailer / dealer SEAI’s 160 compliance visits schools completed with 15 products programme referred for laboratory testing

Four strategic SEAI Energy Show in April was attended collaborative by 5,000 professionals agreements were signed with the Environmental Protection Agency, Science Foundation Ireland, Economic and Social New Research responsive Institute and website €3.4 the Irish Research launched in million Council to co-fund September invested in research projects www.seai.ie sustainable energy research including 15 new ocean SEAI secured planning permission for the energy prototype substation and onshore facility projects and 36 low for the Belmullet full-scale carbon technology ocean energy test-site R+D projects SEAI 08 Sustainable Energy Authority of Ireland

We run campaigns and initiatives changeto increase awareness and behaviours Annual Report 2017 Our Impact 09

New Roles and Responsibilities for SEAI in 2017

Market Surveillance Authority

SEAI has responsibility for the market surveillance of the EU received a report indicating current compliance levels. A labelling Ecodesign Directive, the EU Energy Labelling Regulation and the guide is under development to assist them in that regard. EU Tyre Labelling Regulation, which set standards relating to the We also inspected 61 tyre-fitting outlets to assess compliance energy efficiency of certain products. with their obligation to give motorists tyre labelling information when they have new tyres fitted. We recorded details of over The purpose of market surveillance is to monitor, promote and 1000 different tyre models and checked them to see whether the enforce compliance with this legislation. It acts as a deterrent, labels were correct. This involved checking technical documents creating a level playing field for businesses, whilst also protecting and sending 11 tyres for laboratory testing in France. Taking consumers and the environment. Market surveillance is new account of the views of industry representatives and other to SEAI but our level of activity is growing fast, contributing stakeholders, we identified products at higher risk of non- towards increased awareness of and confidence in energy- compliance with the Ecodesign Directive. related products. We also responded to reports of non-compliance. This resulted in During 2017, we inspected 100 retail outlets to check whether a number technical documentation checks with some products they were displaying energy labels correctly. Each retailer being sent for compliance testing in a laboratory.

Behavioural economics

Behavioural science is a combination of economics, psychology Early on, the team has been scoping opportunities for improving and sociology. It can help us understand barriers that prevent the delivery of current SEAI programmes. They have carried out people from engaging in pro-environmental behaviours and a review of international precedent identifying what works for the motivators that turn people’s intentions into action. SEAI’s changing energy behaviours at home, at work and in public spaces. behavioural economics unit was established in 2017 to apply A small number of pilots are planned to test the solutions with the insights about human behaviour to improve the delivery of greatest potential to improve energy efficiency and reduce energy current and future programmes. use. Recommendations from this will be published in 2018.

For example, homeowners may undervalue future cost savings The unit has also been working with SEAI’s program managers from the investments they make in their home because the savings to identify methods to increase the uptake of existing schemes. are not realised until far in the future. This means that choices The team carried out surveys of previous SEAI customers to made in favour of sustainable energy solutions cannot always be understand more about what parts of the grant process worked guaranteed. This is true even when such options are technically well and where people would like more support. As part of this and financially viable as well as attractive. Behavioural barriers are work, the team conducted a survey experiment to learn more real and significant. It is the task of the new team to design and about how people think about their energy use. By randomly test solutions to these barriers so that more people in Ireland can assigning people to one of two versions of the survey, the team take advantage of the benefits of sustainable energy use. were able to examine how people make judgements about the level of energy they use. The results show that past grant recipients are unsure of how much energy they use a year and they consistently think that they use less energy than the average home, possibly displaying an optimism bias. SEAI 10 Sustainable Energy Authority of Ireland Annual Report 2017 Our Impact 11

Clean energy is vital for the health and well-being of our country and future generations SEAI 12 Sustainable Energy Authority of Ireland

SEAI Making a Difference for all Energy Users

Lidl Ireland GmbH

This award-winning project has been an architecture The building has an active twin wall with a unitised façade, which adventure combined with genuine grass roots is linked to four weather stations so that the blinds continually level stakeholder engagement from staff and respond to the external conditions maintaining a tangible link community alike. with the outside for the employees. The building is also home to solar thermal panels servicing hot water requirements, an air The Lidl Headquarters building is four storeys with basement and source heating pump providing energy for underfloor heating, an has an operating capacity of 440 people. Sustainability is at the intelligent BMS system which dynamically controls LED lighting, core of this buildings design which is BREEAM Excellent certified HVAC and blinds, intelligent natural lighting design, rainwater with an A2 energy rating. harvesting and much more.

Lidl Ireland are a member of SEAI’s large industry energy network. Annual Report 2017 Our Impact 13

James O’Brien, homeowner, New Ross

Retired gentleman James O’ Brien, who moved to Wexford a number of years ago, felt the impact of living in a cold house.

“When I arrived down here to New Ross 13 years ago and bought this house, I thought the walls were cool in parts…you would put your hands on them and you would feel the cold”, he says. James, who had his attic insulated and his house walls pumped with polystyrene beads to increase efficiency says, “When you come in the hall door there now, you can feel the heat. Before it wasn’t there. And you would want to see my ESB bills, it’s down to zilch and that’s a fact. People are seeing their fuel bills reduce and it is really great to know that the SEAI are making the lives of these homeowners that little bit easier”.

The issue of fuel poverty is very real in Ireland today with one in four households struggling to heat their homes. For more than 20 years SEAI has provided government funded energy efficient upgrades to help those who are most in need, working with a range of organisations to help target the most vulnerable homeowners. These energy upgrades improve homeowner comfort levels, physical and mental health and overall quality of life.

James O’Brien’s house was upgraded thanks to an SEAI home energy grant.

Vodafone Ireland

An organisation wide collaboration is the key to success for Vodafone’s energy performance.

Vodafone has implemented ISO50001 across its entire portfolio range including its data centres, its nationwide retail stores and fleets, its headquarters office block and its estimated 2,300 base stations nationwide. Experts from a broad range of different fields provided ongoing support to assist in maintaining and improving the Vodafone Ireland energy management system. In total, the energy management system utilizes over 2,600 energy metres that output a high-level overview of the performance of all sites. The energy team and related experts collaborated to identify innovative ways to access the performance of different users. Based on ongoing projects arising from ISO50001, Vodafone Ireland made energy savings of 5.6GWh, which equates to €450,000.

Vodafone Ireland is a member of SEAI’s large industry energy network. SEAI 14 Sustainable Energy Authority of Ireland

We are a rich resource for you, providing advice and supports Annual Report 2017 Our Impact 15

Dunleer Energy Team

“I am extremely passionate about working within the community for the benefit of everyone. My mother was a founding member of the local credit union, so I grew up appreciating the real impact local communities can have when they come together. I also feel very passionate about climate change and my responsibility to reduce the negative impacts climate change is having on communities across Ireland and indeed the world,” says Dunleer Energy Team Manager and community leader, Eugene Conlon.

Eugene continues by underlying his reasons for being involved in the project. He says, “Starting a sustainable energy movement in my home town of Dunleer was a no brainer. I wanted to do something concrete and meaningful, something that would have a lasting impact on the community I grew up in. I wanted my community of Dunleer to be a place where people wanted to live and where people could enjoy a good quality of life. The boom negatively affected so many communities. There was little concern for the resources and infrastructure that communities need in order to thrive and grow. In Dunleer, we wanted to make sure that we would survive and thrive as a community”.

The Dunleer Community Development Board is an umbrella organisation for 24 community groups in the surrounding area who have all become part of the SEAI’s energy community network.

“We formed an Energy Team to manage the energy programmes within our network. Our aim was to engage people, to relate to people about the realities of climate change and to show them how together we could make a difference. We all have a responsibility to tackle climate change and we need to focus on the practical things that we can do in our homes and communities”.

Eugene and his team secured funding through the SEAI to upgrade 150 buildings across mid-Louth including efficient heating systems and insulation in 140 homes, a GAA club, a soccer club and a local community office. “The works have made a massive difference to the comfort that people feel in their homes and community buildings. They are now saving money on energy bills due to their reduced energy consumption”, says Eugene.

He concludes by highlighting how Ireland has a long history of creating meaningful change nationwide through community led movements. “Right now, there are more than 130 energy communities in SEAI’s network undertaking long term energy efficiency projects just like us in mid-Louth. These communities are stepping up to the plate and are taking action. Communities talking to each other is a critical influencer when encouraging behavioural change and has a much bigger impact than an institution telling communities what to do”.

“We need to collectively, as citizens, take ownership”.

Dunleer Energy Team is a member of SEAI’s energy community network. SEAI 16 Sustainable Energy Authority of Ireland

Waterford Institute of Technology (WIT)

WIT is the first Institute of Technology to obtain certification to ISO50001.

A cross-functional multi-disciplinary team of staff and students from Waterford Institute of Technology (WIT) are promoting energy in the WIT community. The WIT Energy Advisory Group meet every six weeks to enable staff and students to bring energy into everyday life such as at college and at home. WIT is the first Institute of Technology to obtain certification to ISO50001 and already exceeded their 2020 33% energy efficiency target. The strong commitment at all levels from the institute has helped achieve this ranking and the organisation strives to continually drive down energy consumption in preparation for the forthcoming national targets. 11GWh has been saved to date.

WIT participated in SEAI’s ISO50001 certification accelerator programme.

An Garda Síochána

An Garda Síochána is a leading example of energy performance improvement and sustainability – an aspiration for all organisations and representative of best practice energy management.

They are the first police force in the world to achieve ISO50001 certification. By prioritising low cost opportunities, increasing energy awareness, staff participation, training / management and operational control. Through focused efforts in structured energy management and by introducing renewable initiatives and optimising energy performance, the strategy team has delivered annual savings of 2.6GWh. The savings accrued by minimising costs support future energy saving initiatives.

An Garda Síochána are members of SEAI’s public sector partnership programme. Annual Report 2017 Our Impact 17

St John of God Hospital CLG

An impressive energy saving project has been completed by St John of God at their site in Stillorgan under a 5-year Energy Performance Contract or EPC.

The projects included the replacement of low temperature hot water boilers and pipework, upgrading the Building Energy Management System, LED lighting and the installation of a new electrical distribution board alongside a new standby diesel generator. The hospital also replaced the majority of its single-glazed windows with double-glazing which contributed to an energy saving of 2.2GWh. St John of God Hospital has demonstrated that substantial energy consumption, cost and carbon savings can be achieved in the healthcare sector if a commitment to the EPC model is pursued. Overall, their energy and carbon savings means that they played a massive part in Ireland’s 2020 obligations to reduce GHG emissions by 20%.

St John of God Hospital participated in SEAI’s energy performance contracting exemplar programme. SEAI 18 Sustainable Energy Authority of Ireland

Blockchain research at Nimbus Centre, Cork IT

SEAI’s RD&D funding programme aims to improve the coherence of Irish energy research and development, building a cleaner and more secure energy future, while enhancing our knowledge economy.

Blockchain technology is an integral component of bitcoin where it acts as the digital ledger of all transactions, underpinning and enabling the entire concept of cryptocurrency. The potential for blockchain however, extends far beyond cryptocurrency. For instance, one innovative Irish research team based in Cork IT is now using blockchain technology to bring about big changes to the energy sector.

The team at the Nimbus Centre in Cork IT spotted a niche area of research focus – the application of blockchain technology in the energy auditing sector. It investigated the potential to use blockchain technology for the development of a secure and independent energy transaction and verification framework for smaller independent prosumers or communities.

The initial idea for Smartblocks was sparked following a conversation between Smartblocks Principal Software Architect Dr Alan McGibney, and an Irish Energy Services Company (ESCO), who was finding it difficult to gain the trust of clients when collecting and verifying energy savings. Energy monitoring, metering and verification brings with it high costs and this coupled with a lack of transparency in energy calculations acts as a barrier to energy performance contracting. SmartBlocks offer transparency and build trust with clients by offering secure independent verification of the energy transaction data and savings.

Alan and the team developed a set of software services that allow independent entities (ESCOs, building owners, utility providers, energy traders) to leverage the concept of smart contracts and Blockchain technology to create a trusted and verifiable ledger of energy transactions. An integrated prototype for the SmartBlocks system was developed to support the demonstration and evaluation of this Blockchain approach for continuous energy auditing. Senior researcher, Dr Kritchai Witheephanich focused on the development and implementation of the energy forecasting component, to enable prediction of energy demand on-site using thermal and electrical historical data as well as prediction of the onsite renewable energy generation capacity. The SmartBlocks prototype was administered through a web-based portal. This portal provides authorised access to view and manage the SmartBlocks component and visualise current blocks, batches and transactions.

Following on from their 2017 SEAI RD&D project, the research group at Cork IT are actively pursuing options to expand SmartBlocks and move closer to commercialisation. They have met with key industry players and are keen to develop strategic research partnerships to further propel the project.

SmartBlocks was supported by SEAI through the RD&D funding call in 2017. Annual Report 2017 Our Impact 19

researchWe invest in energy and innovation and promote the development of new technologies SEAI 20 Sustainable Energy Authority of Ireland

David Fitzgerald, dairy farmer, Mallow

Farmers can save huge amounts on their energy bills by using variable speed drive technology on their vacuum pump system for their milking parlours. This focus on energy use can easily cut a dairy farmer’s operational costs and benefit their bottom line.

One farmer who took the time to review his energy spend is David Fitzgerald, Mallow who milks a herd of 190 cows. David says, “I’m producing about 1 million litres of milk annually costing me in the region of €8,000 in electricity for milking. So I was looking at ways to reduce this bill and improve the farm profitability”. David decided to install a new variable speed drive vacuum pump system. In fact he installed two of them given the size of his herd. “We decided to avail of the SEAI grant and put in these pumps. I know it has definitely helped reduce our electricity bills by at least 30%. The installer completed the installation in two to three days. You get the pump done in a day easily, so no major disruptions to the milking”.

Saving energy was not the only benefit for David and his cows, “The quiet in the parlour with the variable speed pumps is unbelievable. You wouldn’t even know the machine is running. Farmers have come to my farm to see it in operation and they ask me when will I turn it on, but it is already running. In addition, I have no need to check oil levels as the new pump runs oil free. Every little helps and I would definitely recommend the variable speed pump to other farmers”.

David received an SEAI grant to upgrade the efficiency of his milk pump system. Annual Report 2017 Our Impact 21

National Ambulance of Ireland

The National Ambulance of Ireland has implemented a green technology initiative in its fleet of emergency ambulances. The project has three platforms of change to reduce fuel use and emissions.

Firstly, driver behaviour change in real time. This uses audio in vehicles to warn drivers when they are over speeding by a set percentage of the national speed limits of roads. Secondly, an automated system to eliminate vehicle idling. Thirdly, integrating solar systems on ambulances, which takes away the need for vehicles to plug into national grid for charging purposes. Other services and providers utilise telematics to conduct monitoring and try to change behaviour retrospectively. National Ambulance is the first to make this change happen in real time.

National Ambulance of Ireland won the public sector category in the SEAI Energy Awards 2017.

Astellas (AICL) Kerry Plant

Astellas (AICL) plant in county Kerry is always striving for best practice in energy management.

In 2016, it implemented the Energy Efficient Design Standard IS399. The three projects included a canteen expansion, a compressed air upgrade and a chiller plant upgrade. This resulted in an annual energy saving of 1.7GWh. Now in the mature stage of ISO 50001 certification, Astellas has identified that ‘energy efficient design’ is a key area for continuous improvement. This holistic approach ensures that energy improvement through design excellence will continue into the future.

Astellas collaborated with SEAI in the preliminary development of IS399 Energy Efficient Design Management Standard. SEAI 22 Sustainable Energy Authority of Ireland

The Monasterboice Inn

‘Is this lightbulb even needed here?’ They installed high-grade insulation throughout and smart lighting in their conference rooms and car EXEED, which stands for Excellence in Energy park. They designed the new conference centre to Efficient Design, is a process that integrates energy maximise natural daylight and provide an attractive management as a discipline at the earliest stage of bright space. Renewable energy heat pumps, one building design. It strategically addresses lifecycle of which extracted energy from an on-site stream, energy and carbon costs and drives the adoption replaced old gas boilers, providing heating and of longer-term solutions. EXEED requires a holistic cooling to the building. Hot air, extracted from and systems-thinking approach, which challenges, the kitchen, is used to heat the water. As a result, innovates and drives the adoption of longer-term they expect to reduce energy consumption by solutions as opposed to quick wins or isolated 45%, improving profitability, and lowering carbon opportunities. It challenges the obvious, asking emissions. The projected payback is around three ‘Is this lightbulb even needed here?’ rather than and a half years. simply deciding to replace this lightbulb with LED equivalent. Monasterboice Inn have commenced the EXEED certification process and aim to achieve the EXEED Take for example the Monasterboice Inn a restaurant Verified distinction, further showcasing their and venue near Drogheda, which dramatically commitment and motivation to address their lifecycle upgraded the energy efficiency of its facility. The team energy and carbon costs and consumption. put a boundary around their existing building and their new conference room extension and then used The Monasterboice Inn received a grant from SEAI the EXEED process to challenge their biggest energy towards its EXEED upgrade project. users and optimise building energy performance. Annual Report 2017 Our Impact 23 SEAI 24 Sustainable Energy Authority of Ireland

Snapshot of 2017

MAY JUNE Ursuline Secondary SEAI publishes study on School, Tipperary take ‘Costs and benefits of top honours at One renewable gas’ Good Idea finals in Croke Park

JANUARY 400 delegates participate in 1st annual Public Sector Conference

JAN FEB MAR APR MAY JUN

FEBRUARY MAY JUNE SEAI Launches interactive SEAI publishes study SEAI hosts data portal for researchers ‘Ireland’s solar value first annual and policy analysts chain opportunity’ Deep Retrofit Conference

APRIL €85 million business generated at annual SEAI Energy Show Annual Report 2017 Our Impact 25

JULY SEAI announces 25 projects to share €1 million RDD investment

AUGUST OCTOBER SEAI publishes new New €4 million central NOVEMBER five-year strategy government energy SEAI Energy upgrade programme Award winners completed in announced collaboration with OPW

JUL AUG SEPT OCT NOV DEC

NOVEMBER DECEMBER Energy Community SEAI publishes Network annual ‘Energy in conference takes Ireland’ report place in Athlone SEPTEMBER New energy efficiency support scheme for dairy farmers launched SEAI 26 Sustainable Energy Authority of Ireland

We provide Government with robust evidence to inform energy policy Annual Report 2017 Our Impact 27 SEAI 28 Sustainable Energy Authority of Ireland

Corporate Governance The overall SEAI Governance Statement and Board Members Report, as required by the Code of Practice for the Governance of State Bodies 2016, is set out in the attached Financial Statements for 2017.

SWiFT 3000 Corporate Governance Government requirements. At local level, SEAI works closely with certification/External Evaluation other state agencies and a wide range of local organisations and public representatives to proactively develop sustainable energy In April 2011, SEAI became the first organisation in Europe, policy and initiatives. This underpins the overall national strategic either public or private, to be awarded certification under the objective that SEAI will be central to bringing about a low carbon National Standards Authority of Ireland (NSAI) SWiFT 3000 economy through measures and activities focussed on the standard. This is a standard relating to a Code of Practice for transition to a smarter and more sustainable energy future. This Corporate Governance assessment in Ireland. The objective is to work and interaction is carried out in accordance with various assess the corporate governance frameworks of organisations policy directives issued by the Minister for Communications, and specifically the level of compliance by organisations with Climate Action and Environment. governance codes and best practice. SEAI has maintained its SWiFT 3000 certification since then. The latest review of SEAI Code of Practice for the Governance of State Bodies compliance with the SWiFT 3000 requirements was completed In September 2016, the SEAI Board formally adopted the revised in February 2018, therefore SEAI continues to operate to best Code of Practice for the Governance of State Bodies, issued by the practice corporate governance standards. Department of Public Expenditure and Reform in August 2016. SEAI provides briefings for Board members on the requirements The SWiFT 3000 certification process, entailed a comprehensive of the Code and has put in place a range of actions, procedures external review of SEAI Board structures, processes, procedures and initiatives to ensure compliance with the Code. As referred and material including compliance with SEAI legislation, the to above, SEAI is also evaluated on its compliance with the Code SEAI Code of Governance Framework, Declarations of Interests under the SWiFT 3000 certification process. In addition, SEAI has by Board members, operation of Board Committees. In the most its own Code of Governance Framework for the organisation, recent evaluation SEAI was reviewed on the basis of compliance incorporating the requirements of the Code of Practice for the with the revised Code of Practice for the Governance of State Governance of State Bodies. This Code of Governance Framework Bodies issued in August 2016. is reviewed by the SEAI Board on an annual basis and is available on the SEAI website www.seai.ie. Governance Against this background, SEAI confirms compliance with the While the primary source of corporate governance for SEAI following Sections of the Code of Practice; is the Sustainable Energy Act, the agency is also required to comply with a range of other statutory (National and EU) and Section 1: Role of the Board administrative requirements. SEAI affirms that it complied Section 1.2 Ethical Standards: As stated above the SEAI Board, with its obligations to meet these requirements. The following in consultation with SEAI senior management has devised a procedures are in place to ensure compliance with specific specific SEAI Code of Governance Framework. This sets out requirements: the appropriate structures and procedures to ensure that the governance and accountability arrangements are robust and General Administrative and Policy Requirements effective across the Authority. This Framework includes a Code of At national level, SEAI works closely with the relevant officials Business Conduct for Board members, the conduct required at in the Department of Communications, Climate Action and Board meetings. Board members and designated staff members Environment and officials from other Government Departments are also required to comply with the Ethics in Public Office and state agencies, in advancing its objectives and ensuring legislation on an annual basis. compliance with statutory, administrative and Ministerial / Annual Report 2017 Governance 29

1.7 Matters for Decision by the Board: The SEAI Board has established appropriate mechanisms to ensure that it is fully approved a formal Schedule of Matters specifically reserved to it operational and also monitor and review its effectiveness. for decision, in order to ensure that the direction and control of the body is firmly in their hands. Sections 7.4: Review of the Effectiveness of Internal Control An effective system of internal control is maintained and Section 1.11 Conflict of Interest: The SEAI Board has operated by SEAI. The system of internal financial controls is established comprehensive procedures to monitor and manage reviewed on an annual basis by the outsourced internal auditors potential conflicts of interests of management and Board and this was the case in respect of 2017. The new requirements members. in relation to this review, as set out in the Code of Practice for the Governance of State Bodies, have been applied in respect Section 1.14 Protected Disclosure: The SEAI Board at its of 2017.The review of internal controls and the associated meeting in 1 March 2017 approved a revised Whistle-blowers Statement of Internal Controls ( SIC) for 2017 have ben approved Charter, which takes account of the new requirements arising by the SEAI Audit and Risk Committee and the Board. The review from the Protection of Disclosures Act 2014. is confirmed in the annual letter from the Chairperson to the Minister for Communications, Climate Action and Environment. Section 1.17 Statement of Strategy: The SEAI Board has In addition, the Chairpersons statement on internal controls is adopted a Statement of Strategy for the period 2017-2021 and included in the Annual Report (see Page 43). this was formally launched in July 2017.The Board has agreed a consistent process to monitor updates on progress and Section 7.7 Internal Audit: SEAI has a properly constituted developments in relation to the implementation of this strategy. Internal Audit function in accordance with the principles set out This Strategy is available on the SEAI website www.seai.ie. in the Code of Practice and has a formal Charter, which has been approved by the Board. Section 6: Business and Financial Reporting The SEAI Financial Statements are audited annually by the Section 7.12 Audit and Risk Committee: SEAI has an Comptroller and Auditor General and submitted to the Minister established Audit and Risk Committee with specific terms of for Communications Climate Action and Environment with the reference, approved by the Board, which are reviewed on an SEAI Annual Report in compliance with the Sustainable Energy annual basis, Act 2002. This includes an examination of the annual Statement of Internal Controls (SIC). The Chair submits these reports in Section 8: Parent Department and Oversight Role accordance with the requirements set out in Paragraph 1.9 of the Section 8.4 Oversight Agreements: The Department of Business and Financial requirements of the revised Code .In this Communications, Climate Action and Environment, and SEAI has regard, SEAI confirms that it complies with Government policy in a formal Oversight and Performance Framework/Service Level relation to the total remuneration for the Chief Executive Officer Agreement in place, which is reviewed on an annual basis. and the remuneration of other staff in accordance with the arrangements set out by the Department of Public Expenditure Section 8.16 Procedures for Procurement: SEAI has an and Reform. In addition, SEAI complies with the guidelines appropriate Public Procurement process, which is compliant covering the payment of fees to Chairpersons and Directors / with the current value thresholds for the application of EU and members of State Bodies, as issued by the Minister for Finance. national rules. Competitive tendering is standard procedure in The schedule of Board fees and expenses for Board members is this procurement process. set out in the Governance Statement. Section 8.44 Tax Compliance: The Chairperson, in the separate Section 7: Risk Management and Internal Controls letter furnished to the Minister for Communications Climate Section 7.1 Risk Management: A comprehensive risk Action and Environment, confirms that SEAI has complied with its assessment and management policy has been developed in SEAI obligations under tax law. and the overall risk management framework has been approved by the Board. The SEAI Board and Audit and Risk Committee have SEAI 30 Sustainable Energy Authority of Ireland

Guidelines for the Appraisal and Management Prompt Payment of Accounts Act 1997 of Capital Expenditure Proposals SEAI comes under the remit of the Prompt Payment of SEAI has well established and robust procedures in place for Accounts Act 1997 which came into effect on 2 January 1998, the Appraisal and Management of Capital Expenditure projects and the European Communities (Late Payment in Commercial arising under the Capital (grants) programmes. Transactions) Regulations 2002 which came into effect on 7 August 2002. It is a policy of SEAI to ensure that all invoices are Employment Equality Acts 1998 and 2004 paid promptly. Procedures are in place, however, to ensure that SEAI is committed to a policy of equal opportunities and late interest is paid, if required. equality is an established priority in the organisation. SEAI has a progressive equality and diversity agenda and operates a Ethics in Public Office Act, 1995 and Standards number of schemes providing staff with options in relation in Public Office Act, 2001 to meeting their career and personnel needs including study In accordance with the above Acts, SEAI Board Members furnish leave, educational programmes etc. The SEAI Performance and each year, to the Secretary, completed Statements of Interests in Growth Planning Process also facilitates career and personal compliance with the provisions of the Acts. In addition SEAI staff development. SEAI values diversity and strives to be an equality members, holding designated positions, comply with both Acts. employer where individual contribution is encouraged and differences valued. SEAI is committed to maintaining and Freedom of Information Act, 1997 and Freedom developing a balanced work / life environment for all staff. of Information (Amendment) Act 2003 SEAI is a prescribed body under the Freedom of Information Acts The Safety, Health and Welfare at Work Act 2005 and complies fully with the requirements set out in the Acts. This Act, which replaces the provisions of the Safety, Health and Requests for information under the Acts should be addressed to Welfare Act 1988, consolidates and updates the existing law. SEAI the FOI Officer, SEAI, Wilton Park House, Wilton Place, Dublin 2. continues to take appropriate measures to protect the safety, health and welfare of all employees and visitors and promote Data Protection Acts 1998 and 2004 awareness within its offices to meet the provisions of this Act. SEAI is registered as a Data Controller under the Data Protection This extends to the Public Health (Tobacco) Acts 2002 and 2004. Acts. Data protection is concerned with the protection of the individual’s fundamental right to privacy and to exercise control Customer Charter over how their personal information is used. SEAI has published a Customer Charter, setting out its commitment to a high quality of service. This Charter includes a Official Languages Act 2003 procedure for dealing with complaints, if they arise. In 2017 27 SEAI comes under the remit of the Official Languages Act 2003, complaints were received under this Charter. This is also available which was signed into law on 14 July 2003 to provide a statutory on www.seai.ie. framework for the delivery of services through the Irish language. In accordance with Section 10 of the Act, this Annual Report is published simultaneously in both Irish and English. 150000 '2016'

120000 '2017' Annual Report 2017 Governance 90000 31

60000

30000 Annual Energy 0 A B C D Efficiency Report 2017

SEAI Offices CO2 Emissions (kg)

In 2017, SEAI reduced its total energy consumption by 7.6%. It reduced electricity and thermal energy consumption in their office space by 9%. This was offset slightly by higher transport 86,474 fuel consumption which was due to increased use of the SEAI pool car in place of staff own transport. SEAI first achieved 70,955 certification to the International Energy Management Standard ISO50001 in September 2016. The recent energy reductions are largely as a result of the improved operational control and energy monitoring required by ISO50001.

2 SEAI personnel occupy 1,398 m of office space in Dublin, Dundalk, Cork and Sligo. All the offices are sub-let spaces within larger buildings. Energy use across the four offices is summarised in the table below: 2016 2017 ENERGY USE DIRECT CONSUMPTION FOR OFFICES AND POOL CAR 2016 2017 Energy-efficiency Actions Proposed for 2018

Electricity for Lighting, 120,815 112,669 Maintain ISO50001 certification across the organisation ICT, Office Power, Heating which will ensure continuous focus on energy performance Ventilation & Air Conditioning (kWh TFC*) improvement. Projects proposed are primarily targeting the Dundalk office and include: Natural Gas for Heating 63,894 56,144 (kWh TFC) • Timer clock on burco boiler to reduce electricity consumption outside office hours Marked Gas Oil for Heating 11,602 11,164 (kWh TFC) • Service of AC unit in server room to improve efficiency • Increase temperature in server room to reduce cooling load Petrol for Pool Car 7,379 8,249 (kWh TFC) • Zoning of lights and improved controls to avoid over-lighting • Complete the implementation of the Excellence in Energy TOTALS FOR DIRECT 203,690 188,227 Efficient Design (EXEED) pilot exemplar project at the head CONSUMPTION office building in Wilton Park House, Dublin 2. This will act as a demonstration project for SEAI's new EXEED Certified CO2 Emissions (kg) 86,474 70,955 programme and also deliver an energy saving project for SEAI's existing ISO 50001 energy management system. *Total Final Consumption (TFC) • Purchase of two electrical vehicles and installation of charging equipment at 3 of the 4 offices along with accompanying energy monitoring software. SEAI 32 Sustainable Energy Authority of Ireland Annual Report 2017 Our Impact 33

Energy efficiency delivers measurable economic & employment benefits SEAI 34 Sustainable Energy Authority of Ireland

Governance Statement and Board Members’ Report For the Year Ended 31 December 2017

The Board of the Sustainable Energy Authority of Ireland (SEAI) Section 24 (2) of the Sustainable Energy Act 2002 requires was established under the Sustainable Energy Act 2002 and came the Authority to keep, in such form as may be approved by the into existence on 1 May 2002. This Act was further amended by Minister, with the consent of the Minister for Finance, all proper the Energy Act 2016. The functions of the Authority are set out in and usual accounts of money received and expended by it. Section 6 of this Act. The Board is accountable to the Minister for In preparing these financial statements, the Board of SEAI is Communications Climate Action and Environment, is responsible required to: for ensuring good governance, and performs this task by setting • select suitable accounting policies and apply then consistently strategic objectives and targets and taking strategic decisions • make judgements and estimates that are reasonable and on all key business issues. The regular day-to-day management, prudent control and direction of SEAI are the responsibility of the Chief • prepare the financial statements on the going concern basis Executive Officer (CEO) and the senior management team. The unless it is inappropriate to presume that it will continue in CEO and the senior management team must follow the broad operation, and strategic direction set by the Board, and must ensure that all • state whether applicable accounting standards have been Board members have a clear understanding of the key activities followed, subject to any material departures disclosed and and decisions related to SEAI, and of any significant risks likely explained in the financial statements. to arise. The CEO acts as a direct liaison between the Board and management of SEAI. The Board is responsible for keeping adequate accounting records, which disclose, with reasonable accuracy at any time, Board Responsibilities its financial position and enables it to ensure that the financial statements comply with Section 24 of the Sustainable Energy The broad role of the Board is set out in Section 10 of Act 2002. The maintenance and integrity of the corporate and the Sustainable Energy Act 2002 and the more specific financial information on the SEAI Website is the responsibility of responsibilities of the Board, both individually and corporately, the Board. are detailed in the SEAI Code of Governance Framework, which is approved on an annual basis by the Board and is available on The Board is responsible for approving the annual plan and the SEAI website (www.seai.ie). This document also contains the budget. An evaluation of the performance of SEAI by reference matters specifically reserved for Board decision and the standing to the annual plan and budget was considered in early 2018 and items considered by the Board include: was formally concluded on 19 April 2018. • Quorum and Declaration of Interest requirements • Verification of Minutes of previous meeting The Board is responsible for safeguarding its assets and hence • Matters arising and associated Action Points taking reasonable steps for the prevention of fraud and other • Chairperson’s Report irregularities. The SEAI Board has approved a specific • CEO Report Anti-Fraud Policy. • Finance, Budget and Expenditure Reports • SEAI Strategy developments and performance reports The Board considers that the financial statements for 2017 for • Consideration of procurement and grant proposals, in SEAI give a true and fair view of the financial performance and accordance with approved delegated authority financial position of SEAI at 31 December 2017. • Consideration of Sub-Committee reports • Corporate Risk Review /Risk management • Governance and reserved matters Annual Report 2017 Finance 35

SEAI Board and Committees 2017

Board Structure The Board is responsible for setting the broad strategy and Board members are appointed by the Minister for policies for the organisation. It is responsible for the system of Communications, Climate Action and Environment, with the internal financial control and for putting in place processes and consent of the Minister for Finance, in accordance with the procedures for ensuring that the system is effective. It performs Sustainable Energy Act 2002, as amended by the Energy Act these functions directly and through the operation of specific 2016. New members, on their appointment, are provided with Board Committees in accordance with approved Terms of extensive briefing on the agency and its operations. The SEAI Reference. Responsibility for the implementation of policy rests Board consists of 12 members. The Minister for Communications with the executive management of SEAI. Climate Action and Environment designates one member of the Board (other than the Chief Executive) as Chairperson for a period The Board operates in accordance with the provisions set out for not greater than 5 years. Board members are appointed for 5 year the Board of the Authority in the Sustainable Energy Act 2002. periods and may be reappointed. In line with the provisions of the Act, the Ethics in Public Office Acts 1995 and 2001 and the revised Code of Practice for the The Board of SEAI operates to best practice corporate governance Governance of State Bodies, SEAI Board members are required principles in line with the guidelines set out in the Revised Code to provide an annual Statement of Interests to the Standards in of Practice for the Governance of State Bodies, as issued by the Public Office Commission and the Secretary to the Board. Department Public Expenditure and Reform in August 2016. An appropriate and comprehensive induction and development In the context of Board effectiveness, in January 2018, the process is in place for Board members. Board carried out a review of its activities for 2017. An external evaluation of SEAI compliance with the Code of Practice for the Governance of State Bodies commenced in December 2017 and was completed in February 2018, as part of the SWIFT 3000 Corporate Governance certification process. SEAI 36 Sustainable Energy Authority of Ireland

SEAI Board 2017

Julie O’Neill Jim Gannon Anne Farrell Michael McGarry

Chairperson CEO Ex Officio Appointed 24 April 2012 Appointed 14 May 2013 Appointed 6 May 2015 Appointed 23 May 2016 – retired on 1 May 2014, – retired 1 May 2016 and re- reappointed on 27 May appointed 3 October 2016 Julie is proprietor of Join the Jim is an Engineering Graduate 2014, retired on 1 May 2016 Dots, an independent strategic of NUI Galway, with a Masters and was reappointed on 3 Michael is involved in overseas management consultancy. in Environmental Assessment October 2016 construction and consultancy She served as Secretary from the University of Wales in the supply of engineering General at the Department Aberystwyth and MBA from Anne is a Company director in services. He was previously of Transport from 2002 to the UCD Smurfit School of the family business Squarefit a non-executive Director at 2009 and, in the course of Business. He has worked within Ltd. She has experience of Suir Engineering (now Imtec her public service career, the energy sector throughout energy and sustainability Suir), and has worked in Kentz worked in eight Government his career, delivering projects issues around transport, e.g. Corporation in Clonmel as Departments. She is a Board at a European, national and waste within the industry, Finance Director. In this role, member of Ryanair, Permanent regional level for public and the management and the he spent significant time TSB and also Axa Life Europe. private sector organisations. recycling of tyres to the overseas on commencement She holds an MSc in Policy This has included projects increased use of electric of operations in overseas Analysis from Trinity College across conventional cars. She has worked with countries and subsequent Dublin and a B. Comm from and renewable energy, the Social Economic Unit of management of these. He has UCD. She was previously a transmission and distribution GTW (now Partas) developing also spent some time in the member of the SEAI Board infrastructure, energy policies around fuel poverty UK in residential construction. from September 2011 to demand management and and retrofitting housing for He has a BComm Degree from September 2014. technology development. improved insulation among UCD (1971) and qualified as other strands of activity. She a Chartered Accountant with has served on the Tallaght KPMG in 1975. Hospital Board. She has a Degree in Economics and Psychology from UCD and an MA in Interactive Multimedia from DIT. Annual Report 2017 Finance 37

Pat Gilroy Anne Connolly Dr Peter Brennan Dr Lisa Ryan

Appointed 14 May 2013, Appointed on 2 May 2013, Appointed 6 May 2015, Appointed 6 May 2015, retired on 1 May 2015 retired on 1 May 2015 was reappointed 9 May 2018 reappointed 9 May 2018 was reappointed on 6 reappointed on 6 May 2015 May 2015 and resigned and resigned on 13 June Peter is Managing Director of Lisa is a senior energy on 30 September 2017 2017 EPS Consulting, a public policy economist with expertise in research consultancy, and energy efficiency, renewable Pat is Managing Director in Anne is CEO of the Irish Smart Chairman of Bid Management energy and climate change Ireland for Designer Group. Ageing Exchange (ISAX), Services, Ireland’s largest economics. She joined He is an Engineering graduate a new initiative aimed at tender and procurement UCD Energy Institute as of Trinity College Dublin. He creating jobs and exports in advisory company. He has a senior researcher in energy previously held roles in the the rapidly growing global particular interest and expertise economics in September ESB, Amdahl Ireland Ltd and older consumer market. in climate change and energy. 2014. She was the senior EEL FM Ltd, before heading up This follows on from her role He chaired the IEA’s Climate energy economist in the FP2, which was sold to Dalkia (2006-2013) as the Executive Change Research Group Energy Efficiency Unit at in 2001. Following this he was Director of the Ageing Well from 2007 to 2015 and was the International Energy COO of Industrial Customers Network, an independent an advisor to the Oireachtas Agency (IEA) in Paris until and UK and Country Director high level think-tank and Joint Committee on Climate summer 2013 where she led of Veolia. He is a member of catalyst for social change. Change and Energy. He projects relating to energy the IBEC National Council and Previously she ran her own lectured on the DCU Masters efficiency finance, transport, the Governing Authority in management consultancy and Certificate Programme on and cross-sectoral policy. She Dublin City University. practice for 12 years, working Sustainable Energy Finance. subsequently worked as an with public, private and He is author of an eBook on independent consultant in voluntary organisations business opportunities in the energy and environmental developing their strategic green economy. He was IBEC’s economics. Lisa has a plans and implementing Director for European Affairs PhD in environmental change programmes. Other and Strategy Development economics from University non-executive Board positions and was Director of the College Dublin (UCD), and have included An Post, RHD Brussels based Irish Business other postgraduate and VHA, Fabulous Beast Dance Bureau from 1986 to 2001. In undergraduate degrees in Company, ICC Bank and APSO. his earlier career he worked economics and engineering She is a former Chair of Simon in the Departments on from UCD and Colorado Community Ireland. Industry and Energy and School of Mines, USA. Foreign Affairs. SEAI 38 Sustainable Energy Authority of Ireland

Michael Wall Kevin Brady Kate Ruddock Andrew Ennis

Appointed 6 May 2015, Appointed 16 February 2017 Appointed 16 February 2017 Appointed 14 July 2017 reappointed 9 May 2018 Kevin is the Principal Kate is Deputy Director of Andrew is Renewable Energy Michael is a barrister Officer leading the Strategic Friends of the Earth, and a Director with Bartra Capital, specialising in construction, Energy Policy Division member of the Environmental which has investment activities planning and environmental in the Department of Pillar Steering Committee. in several areas in the Irish law. He also teaches part-time Communications, Climate Kate works to promote infrastructure market including, at UCD on masters’ degree Action and Environment. In sustainable energy policy housing, healthcare, commercial programmes in planning, this role, he is responsible and to raise awareness of property and renewable energy. urban design and landscape for the development and sustainability issues particularly He is a Chartered Accountant architecture. He is a qualified coordination of national and in the context of Climate and holds a B.Comm and architect and planner and European energy policy. He Change and Ireland’s role M.Acc from U.C.D. Andrew has an MBA from the Smurfit is an engineering graduate in responding to Climate has over 16 years’ corporate Business School at UCD. with a Masters in economics Change. She has experience finance experience in the Michael was a member of from University College in community energy projects, Irish infrastructure market, the Board of An Bord Pleanála Dublin. Prior to taking up his environmental education and specialising in energy and from 1999 to 2006, prior current role in 2015, Kevin environmental consulting for renewable energy. Andrew to which he worked as an was an economic consultant renewable energy infrastructure has previously worked for the architect in private practice. specialising in the energy and projects. She has a Degree in NewERA Unit of the National He has served as a member transport sectors. He also has Natural Science from Trinity Treasury Management Agency of the NAMA Planning prior experience developing College Dublin and a which was established to Advisory Committee since wind energy projects in Masters in Environmental provide corporate finance its establishment in 2010. Ireland and internationally. Sustainability from the advice to the Irish Government Michael is also a qualified University of Edinburgh. in relation to the management Mediator and Arbitrator. and disposal of State assets and investment in key economic infrastructure. He also worked with NCB Corporate Finance (now part of Investec Ireland), specialising in infrastructure mergers and acquisitions, valuations and fundraising. Annual Report 2017 Finance 39

The SEAI Board has established two Committees as follows:

Audit and Risk Committee This Committee supports the Board in discharging its legal and accounting responsibilities; communicates with external auditors and evaluates and controls the internal audit function; reviews financial planning, the system of internal financial controls, the risk management and assessment process, including the SEAI Risk Register, and oversees budgeting and banking arrangements. The Committee is independent from the financial management Ann Markey of the organisation and ensures that the internal control systems, including audit activities are monitored actively and Appointed 14 July 2017 independently. The Committee reports to the Board after each meeting and formally, in writing, annually. Six meetings of the Ann is a Fellow of Chartered Committee were held in 2017. The Committee comprises 3 Board Accountants Ireland and members and two external members appointed by the Board. currently operates as a business adviser and Members non-executive director. She Sean Wyse (appointed Chair on 30 May 2012, external member) has extensive experience in Gerry Donnelly (appointed on 29 May 2013, external member) the energy industry having Lisa Ryan (appointed on 27 July 2016) held a number of financial Michael Wall (appointed on 27 July 2016) and commercial executive Vacancy (one) management positions in the ESB group. Her experience Performance Management and spans traditional electricity Remuneration Committee businesses as well as investing This Committee is responsible for reviewing the terms and in high growth technology conditions for the CEO, within the guidelines established by and renewable energy Government. It is also responsible for reviewing and assessing companies focused on the the performance of the CEO on an annual basis in the context low carbon economy. She is a of agreed goals and objectives and the Service Level Agreement Board member of the Digital between SEAI and the Department of Communications Climate Hub Development Agency Action and Environment. In addition, the Committee approves and is Chair of its Audit & Risk the Authority’s Action Plan in respect of any Public Sector Committee. She is a member Agreements, where applicable. of the Audit Committee of the HSE. A UCD law graduate, she Members is also an Associate of the Irish Julie O’Neill (appointed Chair on 6 May 2015) Tax Institute and an associate Kevin Brady (appointed on 4 July 2017) of the Association of Michael McGarry (appointed on 7 February 2018) Corporate Treasurers. SEAI 40 Sustainable Energy Authority of Ireland

Committee Attendance

AUDIT & RISK BOARD COMMITTEE PERFORMANCE ATTENDANCE ATTENDANCE MANAGEMENT & (9 meetings (6 meetings held REMUNERATION BOARD MEMBER held in 2017) in 2017) (a) COMMITTEE (b) FEES 2017 (€) EXPENSES 2017

Julie O'Neill 9 N/A 11,970

Jim Gannon 9 N/A NIL

Anne Farrell 8 N/A 7,695

Michael McGarry 8 N/A 7,695 438

Pat Gilroy (c) 6 N/A 5,771

Anne Connolly (d) 3 N/A 3,527

Peter Brennan 8 N/A 7,695

Lisa Ryan 9 5 7,695

Michael Wall 8 6 7,695

Kevin Brady (e) 6 N/A NIL

Kate Ruddock (e) 6 N/A 6,701

Andrew Ennis (f) 4 N/A 3,847

Ann Markey (f) 4 N/A 3.847

(a) There are two external (Non Board) members on this Key Personnel Changes Committee Two members of the Board resigned during 2017. (b) There were no meetings of this Committee during 2017 Anne Connolly resigned on 13 June 2017 and Pat Gilroy (c) Resigned 30 September 2017 resigned on 30 September 2017. (d) Resigned 13 June 2017 (e) Appointed 16 February 2017 (f) Appointed 14 July 2017

There were two Board members (Kevin Brady and Jim Gannon (CEO) who did not receive a Board fee under the One Person One Salary (OPOS) principle. Annual Report 2017 Finance 41

Disclosures Required by Code of Practice Legal Fees for the Governance of State Bodies (2016) The table below provides a breakdown of legal costs recognised as expenditure in the reporting period. No settlements were The Board is responsible for ensuring that the SEAI Ireland has made during the year. complied with requirements of the Code of Practice for the Governance of State Bodies (the Code), as published by the 2017 2016 Department of Public expenditure and Reform in August 2016. DETAIL €’000 €’000 The following disclosures are required by the Code. Legal Costs 214 156 Employees’ Short Term Benefits Breakdown Employees’ short term benefits in excess of €60,000 are categorised into the following bands: Hospitality Expenditure The Income and Expenditure account includes the following NUMBER OF FTE NUMBER OF FTE hospitality expenditure. No client related hospitality was incurred. EMPLOYEES AT EMPLOYEES AT BENEFIT 31 DECEMBER 31 DECEMBER 2017 2016 BAND € 2017 2016 DETAIL €’000 €’000

60,001 – 70,000 8 10 Staff Hospitality 23 13 70,001 – 80,000 11 13 80,001 – 90,000 7 7 90,001 – 100,000 4 3 Statement of Compliance 100,001 – 110,000 0 0 The Board has adopted the Code of Practice for the Governance of State Bodies and has put procedures in place to ensure 110,001 – 120,000 1 1 compliance with the Code, SEAI was in full compliance with the Code of Practice for the Governance of State Bodies for 2017. Consultancy Costs Consultancy costs include the cost of external advice to Signed on behalf of the Board management and exclude outsourced ‘business-as-usual’ functions.

2017 2016 DETAIL €’000 €’000 Julie O’Neill Chairperson Legal Advice 214 156 Sustainable Energy Authority of Ireland Public Relations/ 4 8 Marketing June 2018 Human Resources 47 0 Business 786 880 Improvement Other 3 0

TOTAL 1,054 1,044 SEAI 42 Sustainable Energy Authority of Ireland

Report of the Comptroller and Auditor General Report for Presentation to the Houses of the Oireachtas

Opinion on Financial Statements Report on Information other than the Financial Statements, and on other Matters I have audited the financial statements of the Sustainable Energy Authority of Ireland for the year ending 31 December 2017 as The Sustainable Energy Authority of Ireland has presented certain required under the provisions of section 24 of the Sustainable other information together with the financial statements. This Energy Act 2012. The financial statements comprise comprises the annual report, the governance statement and • the statement of income and expenditure and retained Board members’ report and the statement on internal control. revenue reserves My responsibilities to report in relation to such information, and • the statement of comprehensive income on certain other matters upon which I report by exception, are • the statement of financial position described in the appendix to this report. • the statement of cash flows and • the related notes, including a summary of significant I have nothing to report in that regard. accounting policies.

In my opinion, the financial statements give a true and fair view of the assets, liabilities and financial position of the Sustainable Energy Authority of Ireland at 31 December 2017 and of its Seamus McCarthy income and expenditure for 2017 in accordance with Financial Comptroller and Auditor General Reporting Standard (FRS) 102 – The Financial Reporting Standard applicable in the UK and the Republic of Ireland. 29 June 2018

Basis of Opinion

I conducted my audit of the financial statements in accordance with the International Standards on Auditing (ISAs) as promulgated by the International Organisation of Supreme Audit Institutions. My responsibilities under those standards are described in the appendix to this report. I am independent of the Sustainable Energy Authority of Ireland and have fulfilled my other ethical responsibilities in accordance with the standards. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Annual Report 2017 Finance 43

Appendix to the Report

Responsibilities of Board Members • I identify and assess the risks of material misstatement of the financial statements whether due to fraud or error: design and The governance statement and Board members' report sets out perform audit procedures responsive to those risks; and obtain the Board members' responsibilities. The Board members are audit evidence that is sufficient and appropriate to provide responsible for a basis for my opinion. The risk of not detecting a material • the preparation of financial statements in the form prescribed misstatement resulting from fraud is higher than for one under section 24 of the Sustainable Energy Act 2012 resulting from error, as fraud may involve collusion, forgery, • ensuring that the financial statements give a true and fair intentional omissions, misrepresentations, or the override of view in accordance with FRS102 internal control. • ensuring the regularity of transactions • I obtain an understanding of internal control relevant to the • assessing whether the use of the going concern basis of audit in order to design audit procedures that are appropriate accounting is appropriate, and in the circumstances, but not for the purpose of expressing an • such internal control as they determine is necessary to enable opinion on the effectiveness of the internal controls. the preparation of financial statements that are free from • I evaluate the appropriateness of accounting policies used material misstatement, whether due to fraud or error. and the reasonableness of accounting estimates and related disclosures. Responsibilities of the Comptroller • I conclude on the appropriateness of the use of the going and Auditor General concern basis of accounting and, based on the audit evidence obtained, on whether a material uncertainty exists related I am required under section 24 of the Sustainable Energy Act to events or conditions that may cast significant doubt 2012 to audit the financial statements of the Sustainable Energy on the Sustainable Energy Authority of Ireland’s ability to Authority of Ireland and to report thereon to the Houses of the continue as a going concern. If I conclude that a material Oireachtas. uncertainty exists, I am required to draw attention in my report to the related disclosures in the financial statements or, My objective in carrying out the audit is to obtain reasonable if such disclosures are inadequate, to modify my opinion. My assurance about whether the financial statements as a whole are conclusions are based on the audit evidence obtained up to free from material misstatement due to fraud or error. Reasonable the date of my report. However, future events or conditions assurance is a high level of assurance, but is not a guarantee may cause the Sustainable Energy Authority of Ireland to cease that an audit conducted in accordance with the ISAs will always to continue as a going concern. detect a material misstatement when it exists. Misstatements • I evaluate the overall presentation, structure and content can arise from fraud or error and are considered material if, of the financial statements, including the disclosures, and individually or in the aggregate, they could reasonably be whether the financial statements represent the underlying expected to influence the economic decisions of users taken transactions and events in a manner that achieves fair on the basis of these financial statements. presentation.

As part of an audit in accordance with the ISAs, I exercise I communicate with those charged with governance regarding, professional judgment and maintain professional scepticism among other matters, the planned scope and timing of the throughout the audit. In doing so, audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. SEAI 44 Sustainable Energy Authority of Ireland

Information other than the Financial Statements Reporting on other Matters

My opinion on the financial statements does not cover the My audit is conducted by reference to the special considerations other information presented with those statements, and I do which attach to State bodies in relation to their management not express any form of assurance conclusion thereon. and operation. I report if there are material matters relating to the manner in which public business has been conducted. In connection with my audit of the financial statements, I am required under the ISAs to read the other information presented I seek to obtain evidence about the regularity of financial and, in doing so, consider whether the other information is transactions in the course of audit. I report if there is any material materially inconsistent with the financial statements or with instance where public money has not been applied for the knowledge obtained during the audit, or if it otherwise appears purposes intended or where transactions did not conform to to be materially misstated. If, based on the work I have performed, the authorities governing them. I conclude that there is a material misstatement of this other information, I am required to report that fact. I also report by exception if, in my opinion, • I have not received all the information and explanations I required for my audit, or • the accounting records were not sufficient to permit the financial statements to be readily and properly audited, or • the financial statements are not in agreement with the accounting records. Annual Report 2017 Finance 45

Statement on Internal Controls

Scope of Responsibility Where SEAI identify grants/scheme amounts repayable to it arising from irregularities or breaches in the grants’ terms and On behalf of the Board of Sustainable Energy Authority of Ireland conditions, grant refunds/repayments are pursued from the (SEAI), I acknowledge the Board’s responsibility for ensuring relevant homeowner/contractors. Where necessary, cases are that an effective system of internal control is maintained and notified to the Garda National Economic Crime Bureau. operated. This responsibility takes account of the requirements of the Code of Practice for the Governance of State Bodies (2016). Risk and Control Framework

Purpose of the System of Internal Control SEAI has implemented a risk management system which identifies and reports key risks and the management actions being taken The system of internal control is designed to manage risk to to address and, to the extent possible, to mitigate those risks. a tolerable level rather than to eliminate it. The system can therefore only provide reasonable and not absolute assurance A risk register is in place which identifies the key risks facing SEAI that assets are safeguarded, transactions authorised and properly and these have been identified, evaluated and graded according recorded and that material errors or irregularities are either to their significance. The register is reviewed and updated by the prevented or detected in a timely way. ARC on an annual basis. The outcome of these assessments is used to plan the internal audit plan for the year and allocate resources The system of internal control, which accords with guidance to ensure risks are managed to an acceptable level. issued by the Department of Public Expenditure and Reform has been in place in the authority for the year ended 31 December The risk register details the controls and actions needed to 2017 and up to the date of approval of the financial statements. mitigate risks and responsibility for operation of controls assigned to specific staff. Capacity to Handle Risk I confirm that a control environment containing the following SEAI has an Audit and Risk Committee (ARC) comprising two Board elements is in place: members and two external members, with financial and audit • procedures for all key business processes have been expertise, one of whom is the Chair. The ARC met six times in 2017. documented, • financial responsibilities have been assigned at management SEAI has also established an internal audit function which is level with corresponding accountability, adequately resourced and conducts a programme of work agreed • there is an appropriate budgeting system with an annual with the ARC. This function is currently outsourced to Mazars. budget which is kept under review by senior management, • there are systems aimed at ensuring the security of the The organisation has developed a risk management policy which information and communication technology systems, sets out its risk appetite, the risk management processes in place • there are systems in place to safeguard the assets, and and details the roles and responsibilities of staff in relation to risk. • control procedures over grant funding to outside agencies The policy has been issued to all staff who are expected to work ensure adequate control over approval of grants and within SEAI’s risk management policies, to alert management on monitoring and review of grantees to ensure grant funding emerging risks and control weaknesses and assume responsibility has been applied for the purpose intended. for risks and controls within their own area of work. Ongoing Monitoring and Review SEAI’s Internal Programme Compliance Committee (formerly Fraud Committee) reviews and directs action on all issues of potential Formal procedures have been established for monitoring control fraud identified through the schemes’ audit and inspection processes and control deficiencies are communicated to those procedures, processes and SEAI’s Inspection Unit Protocol. The responsible for taking corrective action and to management Programme Compliance Committee is made up of cross functional and the Board, where relevant, in a timely way. I confirm that the managers who review all exceptions or concerns identified as a following ongoing monitoring systems are in place: potential risk of fraud or significant non-compliance and provide • key risks and related controls have been identified and prompt and objective direction and support to line management processes have been put in place to monitor the operation of and staff in the mitigation of these risks. those key controls and report any identified deficiencies, SEAI 46 Sustainable Energy Authority of Ireland

• reporting arrangements have been established at all levels Review of Effectiveness where responsibility for financial management has been assigned, and I confirm that SEAI has procedures to monitor the effectiveness • there are regular reviews by senior management of periodic of its risk management and control procedures. SEAI’s monitoring and annual performance and financial reports which indicate and review of the effectiveness of the system of internal financial performance against budgets/forecasts. control is informed by the work of the internal and external auditors, the Audit and Risk Committee which oversees their Procurement work, and the senior management within SEAI responsible for the development and maintenance of the internal financial control I confirm that SEAI has procedures in place to ensure compliance framework. with current procurement rules and guidelines and that during I confirm that the Board conducted an annual review of the 2017 SEAI complied with those procedures with the exception effectiveness of the internal controls for 2017. of the procurement of Agency Staff where the expenditure increased above the initial anticipated levels. This resulted in non- Internal Control Issues compliance of procurement threshold levels. Just over €1million was incurred across four recruitment agencies. Approximately No weaknesses in internal control were identified in relation to €150,000 of this related to the agency fee, while the balance of 2017 that require disclosure in the financial statements €850,000 related to the salary cost of the recruited staff. A new tender process to address the issue commenced on 10th May Signed on behalf of the Board 2018. Management are working to a tight timeline with the view to getting the framework established and contracts issued by August 2018.

Julie O’Neill Chairperson Sustainable Energy Authority of Ireland

June 2018 Annual Report 2017 Finance 47

Statement of Income and Expenditure and Retained Revenue Reserves For the Year Ended 31 December 2017

2017 2016 NOTES €’000 €’000

INCOME State Grants 2 104,815 78,615 Building Energy Rating 9 2,556 2,523 EU Contract Income 3 4 (71) Other Income 4 176 209 Net Deferred Funding for Pensions for the Year 15(c) 1,631 1,434 Pension Contributions Remitted to DCCAE 5.1 (225) (185) Net Transfer to Capital Account 13 (53) (49)

Total Income 108,904 82,476

EXPENDITURE Administration Expenditure 5 10,298 8,185 Programme Expenditure 6 96,363 69,933 Building Energy Rating 9 3,018 3,851

Total Expenditure 109,679 81,969

(Deficit)/Surplus for the Year before appropriations (775) 507

APPROPRIATIONS Movement in Amounts due to DCCAE 8 (21) 62

(Deficit)/Surplus for the Year after appropriations (796) 569

Surplus at 1 January 993 424

SURPLUS AT 31 DECEMBER 197 993

The Statement of Cash Flows and Notes 1 to 21 form part of these financial statements.

Julie O’Neill Jim Gannon Chairperson Chief Executive Officer Sustainable Energy Authority of Ireland Sustainable Energy Authority of Ireland

June 2018 June 2018 SEAI 48 Sustainable Energy Authority of Ireland

Statement of Comprehensive Income For the Year Ended 31 December 2017

2017 2016 NOTES €’000 €’000

STATEMENT OF COMPREHENSIVE INCOME (Deficit)/Surplus for the Year after Appropriations (796) 569

Experience (Gain)/Loss on Retirement Benefit Obligations (996) 725 Changes in Assumptions Underlying the Present Value of 480 (5,555) Retirement Benefit Obligations

Actuarial Loss in Year 15 (516) (4,830) Adjustment to Deferred Retirement Benefit Funding 15 516 4,830

TOTAL RECOGNISED (DEFICIT)/SURPLUS FOR THE YEAR (796) 569

The Statement of Cash Flows and Notes 1 to 21 form part of these financial statements.

Julie O’Neill Jim Gannon Chairperson Chief Executive Officer Sustainable Energy Authority of Ireland Sustainable Energy Authority of Ireland

June 2018 June 2018 Annual Report 2017 Finance 49

Statement of Financial Position As at 31 December 2017

2017 2016 NOTES €’000 €’000

ASSETS Property, Plant and Equipment 10 282 228

Current Assets – Bank 14 4,313 3,967 – Receivables & Prepayments 11 1,135 797

5,448 4,764

CURRENT LIABILITIES Payables & Accruals 12 (5,251) (3,771)

NET CURRENT ASSETS 197 993

Retirement Benefit Obligation 15B (29,856) (27,709) Deferred Retirement Benefit Funding Asset 15B 29,856 27,709

TOTAL NET ASSETS 479 1,221

REPRESENTING Capital Account 13 282 228 Retained Revenue Reserves 197 993

479 1,221

The Statement of Cash Flows and Notes 1 to 21 form part of these financial statements.

Julie O’Neill Jim Gannon Chairperson Chief Executive Officer Sustainable Energy Authority of Ireland Sustainable Energy Authority of Ireland

June 2018 June 2018 SEAI 50 Sustainable Energy Authority of Ireland

Statement of Cash Flows For the Year Ended 31 December 2017

2017 2016 Notes €’000 €’000

NET CASH FLOWS FROM OPERATING ACTIVITIES Excess Expenditure / Income over Income / Expenditure (796) 569 Transfer to Capital Account 13 53 49 Bank Interest Received – (1) Depreciation of Fixed Assets 10 333 165 (Increase) / Decrease in Accounts Receivable 11 (337) 163 Increase / (Decrease) in Accounts Payable 1,368 (2,123)

Net Cash Flow from Operating Activities 621 (1,178)

CASH FLOWS FROM INVESTING ACTIVITIES Payments to Acquire Property, Plant & Equipment 10 (275) (213)

CASH FLOWS FROM FINANCING ACTIVITIES Bank Interest Received – 1

Increase in Cash and Cash Equivalents 346 (1,390)

Net Increase / (Decrease) in Cash and Cash Equivalents 346 (1,390) Cash and Cash Equivalents at 1 January 3,873 5,263

CASH AND CASH EQUIVALENTS 4,219 3,873 AT 31 DECEMBER (NOTE 14)

The balance of €4,219,697 does not include an amount of €93,699 held in a separate bank account relating to the Dundalk 2020 Holistic project (See Note 14). Notes 1 to 21 form part of these financial statements.

Julie O’Neill Jim Gannon Chairperson Chief Executive Officer Sustainable Energy Authority of Ireland Sustainable Energy Authority of Ireland

June 2018 June 2018 Annual Report 2017 Finance 51

Notes to the Financial Statements

1. Accounting Policies Office Equipment 33.33%

The significant accounting policies applied in the preparation of Ocean Programme 33.33% these financial statements are set out below. These policies have been consistently applied throughout the year and for all the Assets with a value of less than €1,000 are fully depreciated in the preceding years. year of acquisition. A full year’s depreciation is charged in the year of acquisition; no depreciation is charged in the year of disposal. (A) Period of Financial Statements The financial statements cover the year from 1 January to 31 The gain or loss, being the difference between the sales proceeds December 2017. and the carrying amount of the asset, arising on disposal or retirement of an item of tangible assets is recognised in the (B) Statement of Compliance Statement of Income and Expenditure and Retained Revenue The financial statements have been prepared on an accruals Reserves. basis, except as stated below. They are prepared in compliance with Financial Reporting Standard 102 “The Financial Reporting Fully depreciated plant and equipment are retained in the Standard Applicable in the UK and Republic of Ireland” (“FRS financial statements until they are no longer in use. 102”). The Financial Statements have been prepared under the historical cost convention, and in the format approved by Fit Out Costs are depreciated over the term of the lease. the Minister for Communications, Climate Action and Environment. The unit of currency in which the financial IT Systems Development costs that relate to specific SEAI statements are denominated is the Euro. The Authority programmes are expensed in the year in which they occur. adopted FRS 102 in the comparative year. Management have considered the policy and believe due to the dynamic and changing nature of the programmes it is (C) State Grants appropriate to expense these costs. State Grants (Note 2), grant refunds and workshop income (Note 4) shown in the Statement of Income and Expenditure (F) Superannuation and Retained Revenue Reserves reflect the amount received Section 17 of the Sustainable Energy Act 2002 provides for the in the year. establishment of superannuation schemes by the Authority. The scheme is a defined benefit scheme for the purposes of the (D) Grant Expenditure Pension Act, 1990. Grant Commitments are recognised as expenditure in the Statement of Income and Expenditure and Retained Revenue Pension costs reflect pension benefits earned by employees Reserves when all conditions pertaining to the grant or a in the period and are shown net of staff pension contributions phased payment thereof, have been complied with. Grant which are refunded to the Department in accordance with Commitments will be reduced on payment of a grant or the agency financing arrangements. An amount corresponding to expiration of the grant agreement. All open Grant Commitments the pension charge is recognised as income to the extent that it are disclosed in Note 16. is recoverable from the Department of Communications, Climate Action and Environment and offset by grants received in the year (E) Tangible Fixed Assets to discharge pension payments. Actuarial gains or losses arising Fixed assets are stated at cost less accumulated depreciation. on the scheme liabilities are reflected in the Statement of Income Depreciation is calculated on a straight line basis in order to write off and Expenditure and Retained Reserves and a corresponding the cost of fixed assets over their estimated useful lives as follows: adjustment is recognised in the amount recoverable from the DCCAE. Motor Vehicles 20% Pension liabilities represent the present value of future pension Fixtures and Fittings 33.33% payments earned by staff to date. Deferred pension funding represents the corresponding asset which is to be recovered in IT Equipment & Software 33.33% future periods from the DCCAE.

SEAI 52 Sustainable Energy Authority of Ireland

The Authority also operates the Single Public Service Pension (K) Significant Accounting Judgements and Estimates Scheme (Single Scheme) which is the defined benefit pension The assumptions underlying the actuarial valuations for scheme for pensionable public servants appointed on or after which the amounts recognised in the financial statements 1 January 2013. Single Scheme member’s contributions are are determined (including discount rates, rates of increase in paid over to the Department of Public Expenditure and Reform. future compensation levels, mortality rates and healthcare cost The related liabilities in relation to future pension payments are trend rates) are updated annually based on current economic included in SEAI’s financial statements. conditions, and for any relevant changes to the terms and conditions of the pension and post-retirement plans. (G) Capital Account The Capital Account represents the unamortised value of income The assumptions can be affected by: used to purchase fixed assets. (i) the discount rate, changes in the rate of return on high-quality corporate bonds (H) Leases (ii) future compensation levels, future labour market conditions Payments under operating leases are charged to the Statement of Income and Expenditure and Retained Revenue Reserves as they fall due. 2. State Grants

(I) Energy Performance of Buildings Directive (EPBD) Under section 22(1) of the Sustainable Energy Act 2002 the EPBD income is generated by the Authority under the Building Minister for Communications, Climate Action and Environment Energy Rating (BER) scheme (S.I. No. 243 of 2012 European provides funding to the Authority for the performance of its Communities (Energy Performance of Buildings) Regulations functions. 2012, previously dealt with under S.I. No. 666 of 2006 European Communities (Energy Performance of Buildings) Regulations 2017 2016 2006 as amended). Under the legislation a building owner must €’000 €’000 provide a BER Certificate and Advisory Report to prospective buyers or tenants when a building is constructed, sold or rented. PROGRAMME There are various fees payable in respect of BER including a fee C3: SEAI Administration upon assessor registration and a levy in respect of each BER – Current 8,590 7,185 assessment submitted in the period to the Authority for the C4: Sustainable Energy Programmes purposes of issuing a BER Certificate. EPBD Income is accounted – Current 6,576 6,298 for on an accruals basis. – Capital 83,547 59,898 (J) EU Contract Income C5: Energy Research Programmes EU contract income is from activities in Energy Efficiency and – Current 845 849 Renewable Energy including technology promotion, information – Capital 5,257 4,385 dissemination, research and event co-ordination and management. Income is recognised in line with the terms of the contract and is TOTAL PROGRAMME 104,815 78,615 based on the timing and performance requirements of the contract. EXPENDITURE As such funds are remitted back to DCCAE a corresponding liability is recognised on recognition of the income. All programmes under sub-heads C3, C4 and C5 above are fully funded under Vote 29 by the DCCAE. Annual Report 2017 Finance 53

3. EU Contract Income 5. Administration Expenditure

The funds from EU contracts of €4,264 (2016: -€70,926) are from Administration Expenditure is made up of the following items: activities in Energy Efficiency and Renewable Energy including technology promotion, information dissemination, research and 2017 2016 event co-ordination and management. NOTES €’000 €’000

The income is accrued on an annual basis based on assumptions Salaries & Related Charges 5.1 5,258 4,284 pertaining at that time. The amounts fluctuate from year to year Pension Costs 15 1,589 1,421 based on the updated progress of the contract. This may result in Recruitment, Training & 5.2 347 116 an increase or decrease in income from year to year. During 2016 Education assumptions changed for a number of contracts and resulted in a Advertising and 5.3 247 180 reduction in the accrual from the prior year. This has led to a debit Promotion balance in the Income and Expenditure account for 2016. General Professional fees 5.4 404 364

Any payments received during the year are remitted back to General Administration 5.5 2,453 1,820 DCCAE. 10,298 8,185

4. Other Income

Other income consists of proceeds from courses and receipts of sponsorship.

2017 2016 €’000 €’000

Sponsorship Sustainable Energy 45 68 Awards Bank Interest – 1 Other Income 33 42 One Good Idea Schools Programme 98 98

176 209 SEAI 54 Sustainable Energy Authority of Ireland

5.1 Salaries and Related Charges The management’s pension entitlements do not extend beyond the standard entitlements in the model public sector scheme or the public sector single scheme. Contracts of Employment do 2017 2016 not include a performance related reward scheme or any benefit- NOTES €’000 €’000 in-kind/perquisites.

Salaries 4,148 3,390 Pension Levy Employer's PRSI 405 324 €205,683 (2016: €195,513) of pension levy has been deducted Agency / Contract Staff 630 501 from salaries and has been paid over to the Department of Board Member 18 75 69 Communications, Climate Action and Environment during Emoluments the year.

5,258 4,284 NUMBER OF FTE NUMBER OF FTE EMPLOYEES AT EMPLOYEES AT The Authority deducts employee superannuation contributions BENEFIT 31 DECEMBER 31 DECEMBER which are remitted to the Department of Communications, BAND € 2017 2016 Climate Action and Environment in respect of SEAI’s benefit scheme and DPER in respect of Single Scheme members. 60,001-70,000 8 10 Included in the salaries cost is €225,000 (2016: €184,760) in 70,001-80,000 11 13 respect of employee superannuation contributions. The Authority 80,001-90,000 7 7 is not required to make employer contributions to the scheme. 90,001-100,000 4 3 Chief Executive’s Remuneration 100,001-110,000 0 0 The current CEO was appointed on 23rd May 2016. The value 110,001-120,000 1 1 of his remuneration in 2017 was €119,648 (2016: €71,739) and expenses were €8,335 (2016: €2,481). The current CEO pension entitlement does not extend beyond the standard entitlements Board Fees in the public sector single pension scheme. His contract of Board fees are disclosed in Note 18. employment does not include a performance related award scheme or any benefit-in-kinds/perquisites. Permanent & Long Term Contract The average number of permanent and long term contract Key Management Remuneration employees for the period was 68 (2016: 54). Key management personnel in SEAI consists of the CEO, the COO and seven Heads of Departments in 2017 (2016: six Heads of Department). The total value of the employee benefits for key management personnel is set out below:

2017 2016 €’000 €’000

Salaries 806,162 695,243 Annual Report 2017 Finance 55

5.2 Recruitment, Training and Education 5.4 General Professional Fees

2017 2016 2017 2016 €’000 €’000 €’000 €’000

Staff Recruitment, Training 328 104 Organisational Development 47 – & HR Systems Schools Programme 318 322 Staff Subscriptions & Publications 19 12 Company Secretarial Fees 39 42

347 116 404 364

5.3 Advertising and Promotion 5.5 General Administration

2017 2016 2017 2016 €’000 €’000 €’000 €’000

Advertising Costs 29 3 Rent, Rates and Service Charges 612 595 Print & Design 50 29 Travel & Subsistence – Staff 13 7 Sponsorship 30 17 Travel & Subsistence – Board 2 1 Communications and Public Relations 97 105 IT General Expenditure 10 7 Workshop Materials and Event Costs 29 17 IT Maintenance 382 227 Other 12 9 IT Systems Development 155 63 IT Licences 307 161 247 180 IT Consumables 55 15 IT Helpdesk 131 155 Depreciation 333 165 Audit Fees – External 32 32 Audit Fees – Internal 34 20 Insurance and Legal 77 58 Telephone & Data Lines 165 169 Stationery 8 9 Other 137 136

2,453 1,820

Expenditure in 2016 of €146,000 relating to Market Surveillance has been reclassified from Administration Expenditure to Programme Expenditure. SEAI 56 Sustainable Energy Authority of Ireland

6. Programme Expenditure • All administration costs directly related to programme expenditure are included in programme costs above. • Expenditure in 2016 of €146,000 relating to Market RE- CLASSIFIED Surveillance has been reclassified from Administration 2017 2016 Expenditure to Programme Expenditure. NOTES €’000 €’000 • Certain comparative figures for the year have been reclassified and re-presented on the same basis as those for the current year. ENERGY EFFICIENCY Better Energy Warmer 6.1 24,381 20,885 Homes 6.1 Better Energy Warmer Homes Better Energy Warmth 6.2 6,912 851 Wellbeing RE- Industry & Business 6.3 3,355 1,623 CLASSIFIED 2017 2016 Programme €’000 €’000 Better Energy Homes 6.4 18,764 18,657

Public Sector Energy 6.5 6,720 1,905 Private Contractors 20,090 18,595 Efficiency Grants Issued 10 43 Market Surveillance 6.6 302 146 Technical Services & Inspections 3,136 1,752 Retrofit Development 6.7 1,022 1,081 Customer Management 643 207 Programme & Quality Assurance Better Energy 6.8 22,196 15,196 Other Costs 134 103 Communities IT Systems Development 361 179 Better Energy Smart 6.9 54 88 & Maintenance Metering Travel Costs 7 6 Better Energy Financing 6.10 436 619 Deep Retrofit 6.11 877 – 24,381 20,885

RENEWABLE ENERGY The Better Energy Warmer Homes scheme supports upgrading Renewable Energy 6.12 2,476 1,228 the energy efficiency of privately owned homes experiencing Research, Development fuel poverty. & Deployment Ocean Energy 6.13 3,397 3,848 6.2 Better Energy Warmth and Wellbeing INNOVATION & INTEGRATION Renewable Energy 6.14 24 39 2017 2016 Information €’000 €’000 Sustainable Energy 6.15 540 207 Communities Private Contractors 6,535 786 Energy Statistics and 6.16 429 424 Programme Operation / Promotion 377 65 Modelling Electric Vehicles 6.17 4,478 3,136 6,912 851

96,363 69,933 The Warmth and Wellbeing Scheme aims to improve the living conditions of vulnerable people living with chronic respiratory conditions. Annual Report 2017 Finance 57

6.3 Industry and Business Programme 6.4 Better Energy Homes

2017 2016 2017 2016 €’000 €’000 €’000 €’000

EXEED 1,556 382 Grants Issued 16,330 17,030 Energy Agreements and LIEN 451 615 Technical Services & Inspections 732 415 SME Capital Pilots 725 – Operational Delivery 939 693 Promoting Energy Efficiency 175 242 Other Costs 175 160 in Business IT Costs 406 319 ACA/Triple E Operational Costs 181 139 Advertising 172 30 SME & Other Industry Costs 134 206 Travel Costs 10 10 IT Systems Development & 124 29 Maintenance Costs 18,764 18,657 Travel Costs 9 10

The Better Energy Homes Programme is a national Programme open 3,355 1,623 to all homeowners including landlords of dwellings built prior to 2006. It incentivises homeowners to make their homes more This programme supports efforts across all business sectors energy efficient. This is achieved through the provision of grants to accelerate adoption of energy efficiency. This is achieved for a suite of measures such as insulation, heating upgrades and through networks and services promoting structured energy solar thermal. management to world class standards, while developing markets for energy efficiency advice and services. Pilot actions (Lighting and Dairy Farms) were undertaken in 2017 to simulate projects 6.5 Public Sector Energy Efficiency in SME sector.

EXEED Certified is a Programme with oversight by SEAI that 2017 2016 €’000 €’000 provides independent certification of assets – either created new by design or retrospectively by upgrade achieving optimised Public Sector Capital Grants 5,363 448 energy performance and with future energy management capability. Grants 66 – Client Advisory Services 724 994 Energy in Education Schools Resource – 34 Other Operational Costs 154 182 IT Systems Development 408 240 & Maintenance Travel Costs 5 7

6,720 1,905

This programme promotes structured energy management practices and delivers direct energy efficiency advice, mentoring, training and specialist technical supports to public sector organisations. In 2017 pilot actions were undertaken to test approaches for retrofit actions in central government buildings and schools. SEAI 58 Sustainable Energy Authority of Ireland

6.6 Market Surveillance 6.8 Better Energy Communities

2017 2016 2017 2016 €’000 €’000 €’000 €’000

Market Surveillance 302 146 Grants Issued 21,604 14,650 Programme Operation / Promotion 592 546 302 146 22,196 15,196

SEAI carries out market surveillance functions relating to the EU Ecodesign Directive, the EU Energy Labelling Direction and The Better Energy Communities programme supports projects the EU Tyre Labelling Regulations on behalf of the Minister for at a community level, specifically seeking to test innovative and Communications, Climate Action and Environment who is the pioneering partnerships for delivery between for example, the Market Surveillance Authority (MSA). public and private sectors, domestic and non-domestic sectors, commercial and not-for-profit organisations including energy Activities include compliance promotion, monitoring and poor homes. verification. SEAI took on these responsibilities from DCCAE on 31 March 2017 and the majority of work undertaken during 2017 related to programme development. 6.9 Better Energy Smart Metering

RE- 6.7 Retrofit Development Programme CLASSIFIED 2017 2016 €’000 €’000 2017 2016 €’000 €’000 Commissioned Studies / Reports 15 15 Programme Operation / Promotion 39 73 Programme Development 201 151 IT Systems Development 325 181 54 88 Other Costs 331 573 Strategic Advice 36 71 SEAI participate in the national smart metering project which Client Advisory 116 94 is co-ordinated by the Commission for Energy Regulation and Travel Costs 13 11 are involved in the Customer Engagement aspects of this work programme. SEAI are also co-ordinators of the National Smart 1,022 1,081 Grid Implementation Group and have responsibility for delivery of Smart Grid test bed infrastructure under the Government’s Retrofit Development supports the wider development Action Plan for Jobs. of the Energy Efficiency Obligation Scheme pursuant to implementation of Article 7 of Energy Efficiency Directive 2012 and the National Energy Efficiency Action Plan. This includes the administration and energy credit management of the Irish energy supplier obligations programme and supports for development of new retrofit programmes. Annual Report 2017 Finance 59

6.10 Better Energy Financing 6.12 Renewable Energy Research, Development & Deployment

2017 2016 €’000 €’000 2017 2016 €’000 €’000 Grants Issued 193 400 Commissioned Research Studies 85 54 Grants Issued 2,011 702 Travel Costs 4 4 Supported Research – 6 Other Operational Costs 154 161 Research Engagement & Partnerships 377 304 IT Development & Maintenance 14 38 436 619 Commissioned Studies / Reports 24 158 Travel Costs 50 20 The Better Energy Financing (BEF) project is a Government initiative to transition to a more market-orientated approach 2,476 1,228 to realising energy efficiencies and is a key element in the Government’s Action Plan for Jobs, which recognises the This programme supports national and international sustainable considerable scope for construction-related employment arising energy research, development and demonstration projects, and from a comprehensive national energy efficiency programme. provides specialist analysis to address policy and technology barriers to the deployment of renewable energy and energy efficiency thus their improving implementation in the Irish 6.11 Deep Retrofit market.

2017 2016 6.13 Ocean Energy €’000 €’000

Grants Issued 752 – 2017 2016 Technical Services & Inspections 26 – €’000 €’000 IT Systems Development 50 – Grants Issued 1,155 1,329 Travel Costs 3 – Sub Contracted Works 1,638 1,803 Other Operational Costs 46 – Commissioned Research / Studies – 12 877 – Other Costs 278 267 Mayo Test Site Work 306 433 Deep Retrofit Pilot programme was created to tackle housing Travel Costs 20 4 energy efficiency challenges in Ireland. It will investigate the challenges and opportunities of deep retrofit. The learning 3,397 3,848 from these pilots will inform our approach towards a large scale deep retrofit of buildings in Ireland. The initial focus is The Ocean Energy Programme is administered by SEAI to on the residential market. implement the Government’s policy decision to accelerate the development of Ocean Energy in Ireland, as set out in the Offshore Renewable Energy Development Plan. SEAI 60 Sustainable Energy Authority of Ireland

6.14 Renewable Energy Information 6.16 Energy Statistics and Modelling

2017 2016 2017 2016 €’000 €’000 €’000 €’000

Programme Operation / Promotion 24 39 Commissioned Research / Research 226 183 Other Costs 190 159 24 39 Travel Costs 10 19 IT Development and Maintenance 3 63 This programme provides independent advice and information on technical, financial and social issues relating to renewable 429 424 energy development and deployment. This programme fulfils SEAI’s responsibility for developing, maintaining and publishing comprehensive national and sectoral 6.15 Sustainable Energy Communities statistics for energy production, transformation and end-use. This also includes detailed modelling studies and policy analysis to provide an independent evidence base to support national 2017 2016 policy making, and participation in a range of national and €’000 €’000 international policy discussion and evaluation activities.

Operation Delivery 512 127 Strategic Advice 17 67 6.17 Electric Vehicles Travel Costs 11 13

540 207 2017 2016 €’000 €’000

This programme involves building capacity in communities to Grants Issued 4,272 3,039 enable delivery of large scale sustainable energy projects and Other Costs 126 85 the transition to sustainable energy communities (SEC) and has developed a national SEC network with currently over 130 IT Development & Maintenance 79 5 members (2016: 60). Travel Costs 1 7

4,478 3,136

This programme is supporting the deployment of electric vehicle technology in the Irish transport system and provides grant aid towards the purchase of electric vehicles and funded an additional 907 electric cars in 2017 (2016: 665 cars) which were grant aided under this programme in 2017. Annual Report 2017 Finance 61

7.1 Consultancy Costs 7.3 Hospitality Expenditure

The Income & Expenditure Account includes the following The Income & Expenditure Account includes the following consultancy expenditure which is categorised as follows: hospitality expenditure which is categorised as follows:

2017 2016 2017 2016 €’000 €’000 €’000 €’000

Legal Advice 214 156 Staff Hospitality1 23 13 Public Relations / Marketing 4 8 24 39 Human Resources 47 – Business Improvement 786 880 1 Included in staff related expenditure for 2017 is an amount of Other 3 – €4,922 (2016: €3,519) relating to SEAI’s contribution to the staff Christmas event. Staff also contribute to this event. 1,054 1,044

Consultancy costs include the cost of external advice to management and exclude outsourced ‘business-as-usual’ functions.

7.2 Travel and Subsistence Expenditure

The Income & Expenditure Account includes the following travel and subsistence expenditure which is categorised as follows:

2017 2016 €’000 €’000

Domestic – Board 1 1 Domestic – Employee 109 82 International – Board – – International – Employee 26 35

136 118 SEAI 62 Sustainable Energy Authority of Ireland

8. Appropriations 9. Building Energy Rating

2017 2016 RE- €’000 €’000 CLASSIFIED 2017 2016 €’000 €’000 EU Contract Income 4 (76) Grant Refunds 17 2 Outsourced Programme Operation 730 610 Other – 12 Programme Delivery and 129 206 Development 21 (62) Quality Assurance 1,043 1,140 IT Support & Maintenance 333 254 Non Exchequer funds received by SEAI are remitted back to the IT System Development 774 1,633 DCCAE. As such funds are recognised as income, a corresponding Travel Costs 9 8 liability to DCCAE is also recognised. 3,018 3,851 The above note details the movement in the amount due to the DCCAE during 2017. SEAI has been designated as the Issuing Authority with responsibility EU Contract income is accrued on an annual basis (see Note for registering BER assessors, provision of IT tools and systems for 3) and can fluctuate from year to year based on the updated assessments, logging BER assessments on the national register progress of the contract. During 2016 assumptions changed for and overall scheme management and promotion. a number of contracts and resulted in a reduction in both the income and liability from the prior year. The BER scheme income for the year was €2,556,255 (2016 €2,523,430) resulting in a loss in the year of €460,618 (2016: €1,327,698). Annual Report 2017 Finance 63

10. Property, Plant and Equipment

IT EQUIPMENT OCEAN OFFICE FIXTURES & MOTOR & SOFTWARE PROGRAMME EQUIPMENT FITTINGS VEHICLES TOTAL €’000 €’000 €’000 €’000 €’000 €’000

COST Balance at 1 January 2017 1,048 1,717 11 243 28 3,047 Additions2 115 51 – 221 – 387 Disposals (80) (43) – – – (123)

Balance at 1,083 1,725 11 464 28 3,311 31 December 2017

DEPRECIATION Balance at 1 January 2017 (886) (1,691) (11) (203) (28) (2,819) Disposals 80 43 – – – 123 Charge for Current year (174) (30) – (129) – (333)

Balance at (980) (1,678) (11) (332) (28) (3,029) 31 December 2017

NET BOOK VALUE 104 45 – 133 – 282 BALANCE AT 31 DECEMBER 2017

Balance at 162 26 – 40 – 228 31 December 2016

2 The additions to Fixtures and Fittings in the current year relates to works completed in Wilton Park House. These are depreciated over a two year period in line with the remaining lease. SEAI 64 Sustainable Energy Authority of Ireland

11. Receivables & Prepayments 14. Bank

2017 2016 2017 2016 €’000 €’000 €’000 €’000

Dundalk Concerto Bid 32 32 Current Bank Account 9 10 EU Contracts 46 41 Savings Account 2,812 1,689 EPBD Receivables 170 175 EPBD Account 1,398 2,174 Prepayments 441 534 4,219 3,873 Other Receivables 446 15 Dundalk 2020 Holistic Project 94 94 1,135 797 4,313 3,967

12. Payables & Accruals The Dundalk 2020 Holistic project is an EU project funded under FP6 (Sixth Framework Programme for Research and Technology Development). SEAI acts as the project co-ordinator, which 2017 2016 €’000 €’000 consists of 23 partners in 6 European countries. SEAI receives funding on behalf of the project and distributes this funding to Payables 1,341 671 the relevant partners. Accordingly the income and expenditure is not included in SEAI’s income and expenditure account. The Accruals 1,040 1,453 funds on hand are included in the bank balance and also in Dundalk 2020 Holistic Project 94 94 creditors. The amounts received and paid are set out below. VAT 1,430 708 PSWT 382 439 2017 2016 PAYE / PRSI 147 106 €’000 €’000 Other Payables 188 201 Deferred Income 629 99 Funds on Hand at 1 January 94 94 Receipts in Year – – 5,251 3,771 Payments in Year – –

FUNDS ON HAND 94 94 13. Capital Account AT 31 DECEMBER

2017 2016 €’000 €’000

Opening Balance 228 150 Transfer (to) / from Statement of Income and Expenditure and Retained Revenue Reserves: Amount Capitalised in Respect 387 213 of Purchased Assets Amortisation in Line with Asset (333) (165) Depreciation

53 49

Adjustment – 29

BALANCE AT END OF YEAR 282 228 Annual Report 2017 Finance 65

15. Retirement Benefit Costs C. Deferred Funding for Pensions SEAI recognises these amounts as an asset corresponding to the Sustainable Energy Authority of Ireland (SEAI) operates unfunded unfunded deferred liability for pensions on the basis of the set defined benefit superannuation schemes for staff. of assumptions described below and a number of past events. SEAI has no evidence that this funding policy will not continue to The results set out below are based on an actuarial valuation of meet such sums in accordance with current practice. the pension liabilities in respect of serving and former staff of SEAI as at 31 December 2017. This valuation was carried out by a Net Deferred Funding for Pensions for the Year qualified independent actuary for the purposes of the accounting standard, Financial Reporting Standard No. 102 (FRS 102). 2017 2016 €’000 €’000 A. Analysis of Retirement Benefit Costs Charged to Expenditure Funding Recoverable in Respect of 1,814 1,606 Current Year Pension Costs 2017 2016 State Grant Applied to Pay Pensions (183) (172) €’000 €’000 1,631 1,434 Current Service Costs 1,273 1,008 Interest on Pension Scheme Liabilities 541 598 The deferred funding asset for pensions as at 31 December 2017 Staff Superannuation Deductions (225) (185) amounted to €29,856,000 (2016: €27,709,000).

PENSION COST IN THE PERIOD 1,589 1,421 D. History of Experience Gains and Losses

2017 2016 2015 B. Analysis of the Movement in Liability During €’000 €’000 €’000 the Year Amount (€) (996) 725 187 2017 2016 Percentage of Present (3.3%) 2.6% 0.9% €’000 €’000 Value of the Scheme Liabilities Scheme Liability at 1 January 27,709 21,445 Total Amount Recognised (516) (4,830) 5,817 Current Service Cost 1,273 1,008 in Statement of Interest Cost 541 598 Comprehensive Income Actuarial Loss / (Gain) 516 4,830 Percentage of Present (1.7%) (17.4%) 27.1% Benefits Paid in the Year (183) (172) Value of the scheme liabilities SCHEME LIABILITY 29,856 27,709 AT 31 DECEMBER The cumulative actuarial loss recognised in the Statement of Comprehensive Income amounts to €11,712,000 (2016: €11,196,000). SEAI 66 Sustainable Energy Authority of Ireland

E. General Description of the Scheme The main financial assumptions used were: The pension scheme is a defined benefit final salary pension arrangement with benefits and contributions defined by AT AT AT reference to current “model” public sector scheme regulations. 31/12/17 31/12/16 31/12/15 For class D PRSI contributors the scheme provides a pension (one eightieth per year of service), a gratuity or lump sum Discount Rate 2.02% 1.96% 2.80% (three eightieths per year of service) and spouse’s and children’s Rate of Increase 3.25% 3.25% 3.25% pensions. For class A PRSI contributors the scheme provides in Salaries a pension (one two hundredths per year of service) up to a Rate of Increase 3.25% 3.00% 3.25% threshold of 3 1/3 times the maximum annual rate of the in Pensions state contributory pension, a gratuity or lump sum (three Inflation 1.96% 1.95% 1.75% eightieths per year of service) and spouse’s and children’s pensions. Normal Retirement Age is a member’s 65th birthday, and pre 2004 members have an entitlement to retire without Mortality Tables used are as follows: actuarial reduction from age 60. Pensions in payment (and deferment) normally increase in line with general public Active & Deferred: sector salary inflation.

PRE- POST- The Single Public Service Pension Scheme (Single Scheme) is the RETIREMENT RETIREMENT PENSIONERS defined benefit pension scheme for pensionable public servants appointed on or after 1 January 2013 in accordance with the Public Male 62% of 58% of ILT15 58% of ILT15 Service Pension (Single Scheme and Other Provisions) Act 2012. PNML00 The scheme provides for a pension and retirement lump sum Female 70% of PNFL00 62% of ILT15 62% of ILT15 based on career-average pensionable remuneration, and spouse’s and children’s pensions. The minimum pension age is 66 years (rising in line with State pension age changes). It includes an Based on these tables, the future life expectancy at age 65 for actuarially-reduced early retirement facility from age 55. Pensions males and females is as follows: in payment increase in line with the consumer price index. CURRENT The valuation used for FRS102 disclosures has been based on PENSIONER FUTURE PENSIONER a full actuarial valuation on 9th February 2018 by a qualified (IN 2017) AT AGE 65 (IN 2037) AT AGE 65 independent actuary taking account of the requirements of the FRS in order to assess the scheme liabilities at 31 December 2017. Male 21.1 years 23.7 years Female 23.7 years 25.8 years Annual Report 2017 Finance 67

16. Grant Commitments and grant repayments/refunds

(i) Grant Commitments It is estimated that the maximum future payments likely to arise from commitments entered into under various support schemes will amount to €28,866,472 (2016: €26,633,658).

COMMITTED COMMITTED COMMITTED AS AT 1 DURING THE DE- AS AT 31 JAN 2017 PERIOD COMMITTED PAYMENTS DEC 2017 €’000 €’000 €’000 €’000 €’000

ENERGY EFFICIENCY Better Energy Warmer Homes 97 1 (40) (10) 48 Better Energy Finance Pilot 906 1,205 (898) (193) 1,020 Energy Agreements Special Investigation 93 10 0 (10) 93 Exemplars 421 3,285 (133) (3,276) 297 Warmer Homes Areas 108 0 0 (84) 24 Better Energy Homes 9,017 20,458 (5,782) (16,330) 7,363 Better Energy Communities 10,023 28,209 (2,857) (21,519) 13,856 Sustainable Energy Communities 0 190 0 0 190 EXEED 299 1,938 (224) (1,498) 515 SME GRANTS 0 839 0 (725) 114

RENEWABLE ENERGY Renewable Energy Research, 756 1,445 (302) (980) 919 Development & Deployment Electric Vehicles 592 4,987 (273) (4,272) 1,034 Ocean 4,321 1,067 (842) (1,154) 3,392

26,633 63,634 (11,351) (50,051) 28,865

17. Related Parties Disclosures The Board adopted procedures in accordance with Section 18 of the Sustainable Energy Act, 2002 and in accordance with Total compensation paid to the CEO and the Board, including guidelines issued by the Department of Finance in relation to the Board members’ fees and expenses and total CEO remuneration disclosure of interests by Board Members and these procedures amounted to €194,226 (2016: €189,944). For a breakdown of the have been adhered to in the year. In accordance with SEAI’s remuneration and benefits paid to key management personnel, Conflict of Interest Policy, on two occasions during the year, two please refer to note 5.1 and note 18. Board members excused themselves from a Board decision in order to avoid any potential or perceived conflict of interest in relation to the Better Energy Communities Programme. SEAI 68 Sustainable Energy Authority of Ireland

18. Board Members Fees and Expenses Board Members Expenses

SEAI pays fees and expenses to its Board members in accordance 2017 2016 with Department of Public Expenditure and Reform regulations €’000 €’000 and circulars. SEAI applied the decision of the Government of March 2010 in respect of fees for members of State Bodies. Board Domestic mileage – – member expenses of €438 were paid in 2017 (2016: €669). Domestic subsistence – – Domestic other 1 1 Board Fees Overseas airfares – –

2017 2016 1 1 €’000 €’000

Julie O'Neill (a) 12 12 Anne Farrell (c) 7 3 19. Operating Leases – Premises Michelle Green (d) – 2 SEAI head office is located in Wilton Park House, Dublin 2 with Paddy Phelan (e) – 7 sub-offices in Dundalk, Cork, Sligo and Belmullet Co. Mayo. SEAI Michael Wall (a) 7 8 has a temporary convenience lease running from 1st July 2009 Lisa Ryan (a) 8 8 to 28th October 2019 on its the Head Office in Wilton Park House. Peter Brennan (a) 8 8 The Authority has the following future non-cancellable minimum Anne Connolly (b) 4 8 lease payments under operating leases for each of the following Michael McGarry (c) 8 5 periods: Patrick Gilroy (b) 6 8 Operating Leases Kate Ruddock (f) 7 – Kevin Brady (f) – – 2017 2016 Andrew Ennis (g) 4 – €’000 €’000 Ann Markey (g) 4 – Jim Gannon (h) – – Within 1 Year 461 467 During 2 to 5 Years 374 839 TOTAL 75 69 Over 5 Years – – a) Appointed 6th May 2015 TOTAL 835 1,306 b) Reappointed 6th May 2015 c) Retired 1st May 2016 and reappointed 3rd October 2016 Operating lease payment recognised as an expense was €416,313 d) Retired 1st May 2016 (2016: €459,186). e) Appointed 6th May 2015 and resigned 18th November 2016 f) Appointed 16th February 2017 g) Appointed 14th July 2017 20. Comparative figures h) Appointed (CEO) 23rd May 2016 Certain comparative figures for the year have been re-grouped and re-presented on the same basis as those for the current year.

21. Approval of Financial Statements

The Board approved the financial statements on 1st March 2018. Annual Report 2017 Governance 69

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